El Salvador has emerged as a pioneer in harnessing renewable geothermal energy for Bitcoin mining. The Central American nation, which made history in 2021 by becoming the first country to adopt Bitcoin as legal tender, has now mined a total of 474 Bitcoins worth $29 million using the energy generated from the Tecapa volcano.
TLDR
- El Salvador has mined 474 Bitcoins worth $29 million since 2021 using geothermal energy from the Tecapa volcano.
- The country now holds a total of 5,750 Bitcoins worth around $354 million, accumulated over three years.
- El Salvador has allocated 1.5 megawatts (MW) out of 102 MW produced by a state-owned power plant for cryptocurrency mining using 300 mining processors.
- President Nayib Bukele has no plans to sell the country’s Bitcoin holdings and aims to make El Salvador one of the wealthiest nations through Bitcoin adoption.
- El Salvador is pioneering the use of renewable geothermal energy for Bitcoin mining, contrasting with the industry’s heavy reliance on polluting fossil fuels.
According to official data released by the government, El Salvador currently holds a staggering 5,750 Bitcoins, valued at approximately $354 million.
This impressive Bitcoin wealth has been accumulated over the past three years, reflecting the country’s unwavering commitment to the world’s largest cryptocurrency.
The mining operation is powered by a state-owned geothermal power plant, which has allocated 1.5 megawatts (MW) out of its total 102 MW capacity specifically for cryptocurrency mining.
This allocation is facilitated by the use of 300 mining processors installed by President Nayib Bukele’s administration.
First steps…
🌋#Bitcoin🇸🇻 pic.twitter.com/duhHvmEnym
— Nayib Bukele (@nayibbukele) September 28, 2021
Bukele, a fervent supporter of Bitcoin, has made it clear that he has no intentions of selling the country’s vast Bitcoin holdings. Instead, he envisions El Salvador becoming one of the wealthiest nations in the world through its embrace of the cryptocurrency.
This ambitious goal is further reinforced by the recent launch of a dedicated website that tracks the nation’s Bitcoin Treasury, underscoring the transparency and accountability surrounding the country’s digital asset holdings.
El Salvador’s innovative approach to Bitcoin mining sets it apart from the rest of the industry, which has long been criticized for its reliance on polluting fossil fuels and its substantial energy consumption.
By harnessing the geothermal energy generated by the Tecapa volcano, El Salvador is demonstrating that Bitcoin mining can be conducted in an environmentally sustainable manner, utilizing renewable resources.
This pioneering effort aligns with the government’s commitment to reducing its dependence on non-renewable resources.
As Daniel Álvarez, the president of the Rio Lempa Hydroelectric Executive Commission, which oversees the power plant, stated in 2021, “We don’t spend resources that contaminate the environment, we don’t depend on oil, we don’t depend on natural gas, on any resource that isn’t renewable.”
JUST IN: 🇸🇻 El Salvador mines 474 #Bitcoin worth $29 million using its volcano-fueled geothermal power plant.
— Watcher.Guru (@WatcherGuru) May 15, 2024
While El Salvador’s bold embrace of Bitcoin has faced criticism from international organizations like the World Bank, the country’s leadership remains undeterred.
President Bukele’s decisive actions, such as announcing plans to purchase one Bitcoin daily during the bear market of 2022-2023, underscore his administration’s unwavering confidence in the cryptocurrency’s long-term potential.
As the world grapples with the environmental impact of cryptocurrency mining, El Salvador’s innovative approach to harnessing geothermal energy could serve as a model for other nations seeking to adopt Bitcoin while minimizing their carbon footprint.
The country’s success in this endeavor could potentially influence the broader cryptocurrency industry to explore more sustainable mining practices, aligning with the growing global emphasis on environmental responsibility.
