Lava Pool was established by Volcano Energy and Luxor, making it the first Bitcoin mining pool in El Salvador. The goal is to utilise the nation’s geothermal energy potential. The change occurs almost two years after El Salvador declared that BTC would become legal tender.
Volcano Energy will now mine Bitcoin locally and give the government 23% of its net income. The initiative for private-public partnerships will be used for this. The pool will only be used to mine BTC. The operations will be supported by the Luxor Hashrate Forward Marketplace.
For the purpose of reducing the risk of price volatility, the Marketplace will offer sophisticated hedging techniques. In addition to being the first to declare Bitcoin legal tender in 2021, El Salvador was also the first to do this. With both businesses, El Salvador has started Lava Pool to incorporate Bitcoin into the energy grid. They will be able to take advantage of the nation’s plentiful renewable resources as a result.
The fact that it will bring in a lot of money for the government of El Salvador is what might work best in this situation. Nayib Bukele’s Central American region of North America will put the money back into building energy infrastructure. This should accelerate its economic growth. Uncertainty exists on whether the entire earnings will be reinvested or just a piece of it. It is safe to deduce from the statement that El Salvador plans to reinvest in all of its energy infrastructure.
It is significant to note that Luxor and Volcano Energy are currently the driving forces in the nation. Other cryptocurrency mining sites might soon come in and give Nayib Bukele their services. If that occurs, at the present rate of 23%, it will only increase government revenue and open up new opportunities for utilising geothermal energy sources.
In June of this year, Volcano Energy successfully raised $1 billion in financing. Out of that investment, $250 million has already been set up for the development of renewable energy and bitcoin mining businesses.
Volcano Energy’s CSO, Gerson Martinez, has emphasised the company’s mission. They have stated that their goal is to establish a vertically integrated energy and bitcoin mining business with values that are closely related to those of the nation’s citizens and investors.
The COO of Luxor, Ethan Vera, stated his enthusiasm for working with Volcano Energy to introduce Lava Pools. Ethan has promised that they will offer El Salvador and Latin America as a whole the best help they can. Vera highlighted the fact that the mining industry values geographical decentralisation before making this statement.
The development happened at a time when Bitcoin miners are looking into more ways to diversify their sources of income as they prepare for the volatility of digital assets.