Volcanic Bitcoin Mining Provides $29 Million Stimulus to El Salvador
According to official data, El Salvador has mined about 474 bitcoins worth about $29 million since September 2021 using geothermal energy from the Tecapa volcano. This increases the country’s total Bitcoin holdings to 5,750 BTC, worth over $360 million.
Just arrived: 🇸🇻 El Salvador has mined almost 474. #Bitcoin Over the past three years, the use of volcanic-fueled geothermal power has been worth $29 million, Reuters reported. pic.twitter.com/bBACoe9GzM
— Bitcoin Magazine (@BitcoinMagazine) May 15, 2024
The renewable energy mining operation is a joint effort between El Salvador and Bitcoin mining companies such as Foundry USA, Antpool, ViaBTC, F2Pool, and Binance Pool. It utilizes geothermal power from Tecapa, one of El Salvador’s many active volcanoes.
Of the 102 megawatts generated by the state-run geothermal power plant next to the volcano, 1.5 megawatts will be used for Bitcoin mining. President Nayib Bukele has installed 300 special mining processors to expedite the process.
El Salvador made headlines in 2021 by becoming the first country to adopt Bitcoin as fiat currency. Despite criticism from the IMF and others, Bukele has remained committed to Bitcoin, with a Bitcoin mining operation powered by volcanic fuel geothermal energy embodying this forward-thinking approach.
The country’s mining performance stands in stark contrast to Bitcoin miners, who face scrutiny globally over their energy use. El Salvador’s use of Tecapa’s geothermal energy provides a renewable model that could potentially be adopted elsewhere.
The $29 million mined demonstrates the substantial real-world value created by El Salvador’s status as the first Bitcoin country. As more renewable mining takes place around the world, the country’s volcano model provides an ambitious precedent.
