Volcano Energy in El Salvador secures $1B for 241 MW Bitcoin mine.
Volcano Energy has announced that it has received $1 billion in commitments to build a 241 megawatt (MW) bitcoin mine in the Metapán region of El Salvador. The announcement was made via a press release on Twitter on Monday.
The company stated that the initial investment of $250 million came from “key Bitcoin industry leaders.”
The press release stated that the mining site will be powered by 169 MW of solar energy and 72 MW of wind energy, providing computing power of over 1.3 exahash/second (EH/s). The mining site will be located in Metapán, Santa Ana, in the northwest of the country.
Volcano stated that the government will play “a crucial role” in the planning and execution of the project, and that they have secured a “preferred participation equivalent to 23% of revenues.” The outside investors will own 27% of the venture and the remaining 50% will be “reinvested” to expand energy production and mining capacities.
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Previous mining initiatives in El Salvador have been focused on the country’s geothermal energy potential, but it is unclear how this new solar and wind energy park will be connected with volcanic activity. In its press release, Volcano mentioned that this mining site is intended as a “pathway to our geothermal future,” but did not provide further details.
As opportunities for new developments have been limited in North America, mining firms have been looking elsewhere for investments, such as in Latin America and the Middle East.
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