According to Volcano Energy, the money will be used to build a 241 megawatt power producing park.
El Salvador has received the first $250 million of a promised $1 billion investment to build a bitcoin mining farm through a public-private partnership. The money will be utilized to build a solar and wind-powered 241 megawatt power producing park in the Metapán area.
The project’s sponsor, Volcano Energy, tweeted about the money release. The energy needed for the Bitcoin mining activity will eventually be provided by the power generation park.
Because of the substantial energy consumption associated with bitcoin mining, which has the potential to contribute to climate change and deforestation, environmentalists have expressed alarm.
Tether, a stablecoin issuer, took part in Volcano Energy’s initial funding round, albeit the precise amount invested has not been made public. The chief technical officer of Tether reaffirmed the stablecoin issuer’s dedication to encouraging investment in mining and renewable energy infrastructure.
The 241 megawatt capacity of the power generation park will be made up of 169 megawatts of photovoltaic solar energy and 72 megawatts of wind energy. Volcano Energy wants to rank among the top 20 mining pools globally by achieving a total Bitcoin mining hash rate of more than 1.3 exahashes per second.
As stakeholders investigate more environmentally friendly methods and infrastructure, investments like this one in Bitcoin mining powered by renewable energy show that attempts are being made to address environmental issues related to the cryptocurrency sector.