El Salvador's Volcano Energy Secures $1B in Commitments for 241 MW Bitcoin Mine

Volcano Energy announced $1 cardinal successful commitments to physique a 241 megawatt (MW) bitcoin excavation successful the Metapán portion of El Salvador, according to a Monday property merchandise connected Twitter. One of the investors is Tether, the issuer of stablecoin USDT, according to a abstracted property merchandise shared with CoinDesk.

The mining tract volition beryllium powered with 169 MW of star and 72 MW of upwind vigor to bring computing powerfulness of implicit 1.3 exahash/second (EH/s), the property releases said. It volition beryllium located successful Metapán, Santa Ana, successful the country's northwest.

The authorities volition play "a important role" successful readying and execution and has secured a "preferred information equivalent to 23% of revenues," said Volcano. The extracurricular investors volition ain 27% of the task and the remaining 50% volition beryllium "reinvested" to grow vigor accumulation and mining capacities, the steadfast said.

Earlier mining initiatives person been focused connected El Salvador's geothermal vigor potential, but it was unclear however this caller star and upwind vigor parkland would beryllium connected with volcanic activity. In its property release, Volcano mentioned that this mining tract is intended arsenic a "pathway to our geothermal future," but didn't clarify the roadmap.

Tether has been trying to diversify its "strategic ecosystem" and Volcano Energy represents 1 of "the astir ground-breaking" initiatives it has backed, said Chief Technology Officer Paolo Ardoino. The stablecoin issuer has been engaged connected the concern beforehand successful the past fewer weeks, including connected bitcoin mining successful Uruguay and purchasing bitcoin to adhd to its reserves backing USDT.

As opportunities for caller developments person been constricted successful North America, mining firms and others person been looking elsewhere for investments successful places specified arsenic Latin America and the Middle East.

UPDATE (June 5, 14:35 UTC): Adds details connected Tether throughout.