The Volcano Energy initiative, in collaboration with Luxor Technology, has begun mining blocks through Lava Pool, launching El Salvador’s first local Bitcoin (BTC) mining pool. The $1 billion renewable energy project in the nation garnered news earlier in 2023. Tether, a stablecoin issuer, was one of the investors in the project, which aims to produce electricity in El Salvador from renewable sources to power future Bitcoin mining activities in the nation.
Luxor’s expertise in offering Bitcoin mining software and services is being used by Volcano Energy. Additionally, the initiative will make use of Luxor’s Hashrate Forward Marketplace to automate risk management techniques now employed by other significant Bitcoin mining companies to reduce market volatility. Gerson Martinez, chief strategy officer of Volcano Energy, made a statement highlighting ongoing efforts by El Salvador to gain first-mover advantage as a nation-state adopting Bitcoin.
As part of a public-private collaboration, Volcano Energy will give the government of El Salvador 23% of its net earnings from mining operations. In order to promote economic and technological development in the Central American country, mining proceeds are also planned to be invested in infrastructure for electricity transmission. The first stage of the Volcano Energy project entails the development of a 241-megawatt (MW) renewable energy park near Metapán, which will include 72 MWs of wind power and 169 MWs of photovoltaic solar power. The project’s long-term objective is to utilize the nation’s rich geothermal energy.