El Salvador Launches First Bitcoin Mining Pool
BITmarkets Team
Oct 15, 2023
El Salvador has formally launched its first local Bitcoin (BTC) mining pool, as the Volcano Energy initiative, in collaboration with Luxor Technology, begins mining blocks through Lava Pool.
The Bitcoin-friendly country's $1 billion renewable energy project grabbed headlines earlier in 2023, with stablecoin issuer Tether among those financing in the project, which seeks to generate electricity in El Salvador from renewable sources to fuel future Bitcoin mining activities in the country.
Volcano Energy is leveraging Luxor's expertise in Bitcoin mining software and services. Luxor's Hashrate Forward Marketplace will also be utilized to decrease market volatility through automated risk management measures used by other prominent Bitcoin mining operations.
A statement from Volcano Energy chief strategy officer Gerson Martinez shed light on the continuous efforts by El Salvador to secure first-mover advantage as a Bitcoin-adopting nation:
“Our vision is to create a vertically integrated energy and bitcoin mining company whose value is accretive to investors and to all Salvadoran citizens.”
The foundation of Volcano Energy and the launch of local Bitcoin mining, according to Luxor's chief operating officer Ethan Vera, will add to Bitcoin's ethos of geographical decentralization.
The announcement also cites the possibility of using Bitcoin mining to boost the economics of new energy projects in nations with rich renewable energy sources. Mining operations can serve as a "flexible buyer of first and last resort" for energy providers, as well as an additional revenue source.
Volcano Energy will contribute 23% of its net income from mining operations to the El Salvador government as part of a public-private partnership. Mining income will also be reinvested in energy transmission and infrastructure to spur economic and technological development in the Central American country.
Sources:
https://cointelegraph.com/news/el-salvador-first-bitcoin-mining-pool-volcano-energy-luxor
