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After the “Volcano Bonds”, debt securities backed by Bitcoin (BTC), El Salvador announced a new project, “Volcano Energy”. According to information, the project aims to create the largest BTC mining structure in the world. El Salvador plans to build a generation park that uses renewable energy, that is, clean. Furthermore, the park in question will have 241 megawatts (MW) and will be located in the Metapán region. The park’s design combines solar, wind and probably geothermal energy production. In this way, the structure will position the country as an important global player in the Bitcoin mining industry.
El Salvador’s New Approach
The idea of the Metapán park is to promote energy competitiveness, diversification and geographic expansion for the Bitcoin network. With this, El Salvador should contribute to reducing the geographical dependence on mining and decentralize the activity. “This project is a transformative journey that will establish one of the largest Bitcoin mining farms in the world,” the statement said. “Located in the village of El Shiste, in the municipality of Metapán, Santa Ana, this chosen site has exceptional solar and wind yields in the country.” The park will have a capacity of 169MW of photovoltaic solar energy and 72MW of wind energy. The initial computational power is expected to exceed 1.3 exahashes per second (EH/s), which would place it among the largest in the world. Just like the Volcano Bonds, the total investment in the park is US$ 1 billion. According to the government, the initial goal is to raise US$ 250 million from the main leaders of the Bitcoin industry. At the same time, El Salvador intends to call on leading renewable energy technology developers and manufacturers to take charge of the project. The government of El Salvador will play a key role in the planning and execution of the initiative. Because of this, the country must guarantee a preferential participation equivalent to 23% of the revenue. Finally, 73% of the activity’s total revenue will remain, and part of this percentage will go to the other investors in the project. Each of them will receive their share according to the amount invested in the project. And another percentage should go to investments in expanding energy production capacity and advancing Bitcoin mining.
Expansion of activity
Interestingly, the project does not explicitly mention geothermal energy coming from volcanoes, El Salvador’s main source. But according to Robert Warren of Distributed Hash, wind and solar production will likely generate revenue faster than building on top of a basic geothermal expansion set. The executive stated that the initial capacity of 241 MW is not the greatest. But if the country manages to implement it successfully, it will be able to build one of the largest mining parks in the world. By leveraging Volcano Energy, El Salvador aims to create a prosperous future powered by sustainable energy and Bitcoin. As the country’s investment advances, volcanoes can serve as the backbone of this transformation, promoting economic growth and prosperity for future generations. Follow CriptoFacil on
