- El Salvador has officially launched its first local Bitcoin mining pool, with the Volcano Energy project partnering with Luxor Technology.
- The project will also use Luxor’s Hashrate Forward Marketplace to mitigate market volatility through automated risk management strategies used by other major Bitcoin mining operators.
- The announcement also states that countries with abundant sources of renewable energy can use Bitcoin mining to boost the economy with new energy projects.
El Salvador, in partnership with Luxor, enters the world of Bitcoin mining: Mining revenues will support the country’s development.
El Salvador Officially Launches Partnership with Luxor
El Salvador has officially launched its first local Bitcoin mining pool, and the Volcano Energy project has started mining blocks through the Lava Pool in partnership with Luxor Technology.
The Bitcoin-friendly country’s $1 billion renewable energy project, which emerged in 2023, made headlines with its investment from stablecoin issuer Tether, one of the companies planning to generate electricity from renewable sources in El Salvador and use it to support future Bitcoin mining operations in the country.
Volcano Energy benefits from Luxor’s experience in Bitcoin mining software and services. The project will also use Luxor’s Hashrate Forward Marketplace to mitigate market volatility through automated risk management strategies used by other major Bitcoin mining operators.
Gerson Martinez, Vice President of Volcano Energy, emphasized El Salvador’s ongoing efforts to secure the first-mover advantage as a nation-state that accepts Bitcoin:
“Our vision is to create a vertically integrated energy and Bitcoin mining company that adds value to investors and all Salvadoran citizens.”
Ethan Vera, Chief Operating Officer at Luxor, stated that the establishment of Volcano Energy and the launch of local Bitcoin mining contribute to the decentralization principle of Bitcoin.
The announcement also notes that countries with abundant sources of renewable energy can use Bitcoin mining to boost the economy with new energy projects. Mining operations can serve as the “first and last resort buyer” for energy producers and function as an alternative source of income.
Mining to Contribute to Government Revenue
As a public-private partnership, Volcano Energy will contribute 23% of its net mining income to the Salvadoran government. Mining profits will also be reinvested in energy transmission and infrastructure to promote economic and technological growth in the Central American country.
The first phase of the Volcano Energy project includes the construction of a 241-megawatt (MW) renewable energy park in Metapán, featuring 169 MW of photovoltaic solar energy and 72 MW of wind energy. The project’s long-term goal is to tap into the abundant geothermal energy in the country.
In a previous exclusive interview with COINOTAG in Amsterdam, Tether’s Chief Technology Officer Paolo Ardoino stated that the company aimed to diversify its investments in energy production and use renewable energy while conducting Bitcoin mining.
