El Salvador raises $1 billion in pledges for its volcano bonds. Stablecoin publisher Tether is also among the group of companies investing in the new mining operation in El Salvador. Funny fact is that the project lives under the name Volcano Energy, but that it initially runs on solar and wind energy.
What is the goal?
The main goal of the mining operation of Volanco Energy is to make El Salvador a dominant player in Bitcoin mining. In theory, this could work because the industry is still relatively small at the moment.
On the other hand, the mining industry is currently already a multibillion-dollar ball and considerable capital is needed to seriously participate at the highest level.
El Salvador’s first Bitcoin mine will be powered by 169 MW of solar energy and 72 MW of wind energy. That should be enough to keep 1.3 EH/s of hashrate up and running for El Salvador.
The Salvadoran government is intended to play a “critical role” in planning and executing the operation. According to reports, the government is about 23 percent in the project. The remaining 27 percent is for investors and the rest is reinvested.
Where are the volcanoes?
The big question is, of course, where the volcanoes that were originally in the plan remain. El Salvador would use its excess volcanic energy to keep Bitcoin miners working. Now the first mine will run on solar and wind energy.
The statement does say that this first operation “opens the way to the geothermal future,” but exactly how is not clear at this time.
That Tether is now back on the list as an investor is cool to see. Earlier it was announced that they also invested in Bitcoin mining in Uruguay and that they buy Bitcoin for their reserve pot.
In this way, Tether really contributes to the ecosystem in a way. Now it is to be hoped that the misery at Binance will not weigh too heavily on the industry. So far it doesn’t look pretty.
