Crypto

Tether Enters El Salvador’s Sustainable Crypto Mining Powered by Volcanic Energy

Tether, the renowned stablecoin provider, is boldly venturing into sustainable Bitcoin mining, making the most of El Salvador’s abundant volcanic energy. This exciting expansion underlines El Salvador’s steady rise as a significant global player in the Bitcoin mining sector, primarily powered by the country’s numerous volcanoes.

Mining Bitcoin With Volcanoes In El Salvador

In an ambitious initiative, an El Salvador-based enterprise, aptly named “Volcano Energy”, has embarked on the initial stage of an envisioned $1 billion investment towards sustainably powered digital asset mining in this forward-thinking nation. Volcano Energy’s primary aim, as outlined in a recent press release, is to establish El Salvador on the global Bitcoin mining map firmly.

This venture coincides with the second anniversary of El Salvador President Nayib Bukele’s game-changing declaration in June 2021, making Bitcoin legal tender throughout the country.

Volcano Energy’s plans have been met with immense support, having already raised $250 million for the project. The funds have been sourced from crucial figureheads in the Bitcoin industry and leading manufacturers of advanced Bitcoin technology.

The company is creating a 241 MW power generation facility, which will be entirely powered by wind and solar energy. Initially boasting a computational capacity of 1.3 EH/s, this project will lay the groundwork for subsequent geothermal energy mining ventures.

The Bold Approach Gains Traction

Max Keiser, a notable El Salvador’s national Bitcoin Office member and now Chairman of Volcano Energy, echoed the project’s visionary aspirations. “The goal is economic liberty, self-determination & sovereign wealth accumulation for generations to come,” Keiser pronounced.

El Salvador’s government has a crucial role in planning and implementing this trailblazing initiative, set to earn 23% of the Bitcoin revenue it generates. A further 27% of revenues are earmarked for investors, while the remaining half is intended for reinvestment into mining infrastructure development.

The unique geographical positioning of El Salvador, a land marked by over a dozen active volcanoes, presents an innovative prospect for BTC mining, something the national government has already explored.

Tether Gets In on The Action

Tether, the world’s largest stablecoin provider, is backing this venture, which recently announced its foray into the mining sector in Uruguay. Tether’s significant market presence is evidenced by a reported net profit of $1.5 billion in Q1 2023.

Paolo Ardoino, Tether’s CTO, confirmed that their investment is comfortably covered by the company’s excess reserves, assuring all USDT tokens remain fully backed. “The potential of El Salvador as the global energy and Bitcoin hub is immense, and at Tether we’re grateful to be part of this opportunity,” Ardoino said.

Tether has shown a deep commitment to environmental stewardship, underlined by its ongoing investment in sustainable Bitcoin mining in Uruguay, which focuses on maintaining a “minimal ecological footprint.”


None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.

JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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