A public-private partnership in El Salvador has secured the first $250 million of a $1 billion pledge to build a Bitcoin mining farm. This first round of funding will be used to establish a 241-megawatt (MW) power-producing park in the country’s Metapán region.
The cash will be used to develop the power generation park using solar and wind energy, which will eventually power the Bitcoin mining operation, according to Volcano Energy, the business behind the site. Volcano Energy chairman Max Keiser announced the announcement on Twitter on June 7.
Bitcoin mining uses high-powered computers linked to a global network, consuming enormous amounts of electricity. Due to its huge environmental impact, environmentalists have criticized the energy-intensive process, claiming it exacerbates forest loss and climate change.
In its press release, Volcano Energy shares with the community, “This project is a transformative journey that will establish one of the world’s largest Bitcoin mining farms.”
The release also states:
“Located in the El Shiste hamlet, within the municipality of Metapán, Santa Ana, this chosen site boasts exceptional solar and wind energy yields in the country.”
Furthermore, the park will have a photovoltaic solar energy capacity of 169MW and a wind energy capacity of 72MW. The first computational power is predicted to exceed 1.3 EH/s, representing a remarkable achievement for the country and the industry.
Related: El Salvador’s Legislature Passes Landmark Digital Securities Bill For Bitcoin Bonds
As per the funds raised in the capital, the press release mentions that “the total commitment for the project is $1 billion, beginning with a first investment of $250 million, bootstrapped by key Bitcoin industry leaders, with collaboration from top developers and manufacturers of renewable energy technology, as well as Bitcoin mining experts on a global scale.”
Moreover, El Salvador’s government will play a critical role in the initiative’s design and execution, securing preferential participation equal to 23% of the earnings. The remaining stake will be shared among investors and reinvested in boosting energy production capacity and Bitcoin mining.
While this approach to generating energy seems unusual, Robert Warren of Distributed Hash has it all sorted in his thread:
El Salvador hopes to achieve a bright future powered by renewable energy and Bitcoin using Volcano Energy. Volcanoes could be the backbone of the country’s investment as it grows, encouraging economic growth and wealth for future generations.
Overall, developing the renewable energy generation park is a significant step towards fulfilling these objectives and strengthening El Salvador’s place in the worldwide Bitcoin mining business.
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