El Salvador's President names Volcano Energy for Bitcoin mining

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El Salvador's President names Volcano Energy for Bitcoin mining

He is the nation's first attempt to harness the abundance of renewable geothermal energy for crypto mining, with the cooperation of energy company Volcano Energy and tech corporation Luxor Technology.

Volcano Energy, a public-private partnership that has pledged to commit 23% of its net income to Salvadoran government, is to maintain the Lava Pool.

The pool is set to benefit from Luxor's Hashrate Forward Marketplace, which offers hedging strategies to protect against market volatility, a feature that has been adopted by significant players in the Bitcoin mining industry.

The move emphasizes the nation's ongoing efforts to merge Bitcoin into its energy infrastructure, a strategy that could significantly enhance the economics of new energy projects, particularly in remote areas, providing immediate revenue and offering flexible load management capabilities to support the grid during periods of high demand or stress.

The initiative is part of a larger Volcano Energy project, a mission to establish a worldwide Bitcoin mining powerhouse powered by renewable solar and wind energy. Bitcoin industry leaders are pushing for a $21 billion investment to develop a renewable power production park in the Metapan region of El Salvador.

The Bitcoin mining farm's initial computational power is projected to exceed 1.3 EH/s, placing Volcano Energy within the top 20 mining pools by hashrate. However, it remains to be seen how this development will affect the acceptance and integration of Bitcoin mining in the global energy infrastructure.