Volcano Energy, a Bitcoin miner from El Salvador, launches with a $250M investment.

A public-private partnership in El Salvador has received its first $250 million out of a $1 billion commitment to create a Bitcoin (BTC) mining farm. The company behind the site, Volcano Energy, plans to develop a 241-megawatt (MW) power generation park in the Metapán region of El Salvador using solar and wind energy. The park will eventually power the Bitcoin mining operation. Max Keiser, the chairman of Volcano Energy, announced the news on Twitter.

Bitcoin mining uses high-power computers that consume massive amounts of electricity and is known to be an energy-intensive practice, which has faced criticism from environmentalists. Tether, a stablecoin issuer, is one of the investors in the first funding round for Volcano Energy. The investment marks Tether’s intent to drive investment in renewable energy production and mining infrastructure.

According to Volcano Energy, the 241-MW power generation capacity will be divided between 169 MWs of photovoltaic solar energy and 72 MWs of wind energy. The computing power of the park is estimated to exceed 1.3 exahashes per second, which would position Volcano Energy’s cumulative Bitcoin mining hash rate among the top 20 pools worldwide. The Salvadoran government will play a crucial role in the planning and execution of the initiative and secure preferred participation equivalent to 23% of revenues. The investors will own 27%, with the remaining 50% reinvested in expanding energy production capacity and advancing Bitcoin mining.

Max Keiser, a Bitcoin advocate and podcaster, serves as an adviser to President Nayib Bukele and chairman at Volcano Energy, playing a crucial role in El Salvador’s adoption initiatives. El Salvador was the first nation to make BTC legal tender in 2021 and continues to drive Bitcoin adoption.