USDT stablecoin issuer Tether has taken part in the first round of funding for Volcano Energy’s $1 billion bitcoin mining project in El Salvador.
Tether Energy is doubling down on #bitcoin with our investment into Volcano Energy in El Salvador 🌋🇸🇻 We’re fueling sustainable Bitcoin mining and supporting El Salvador’s economic growth🍊⛏️
Learn more 👉 https://t.co/PlJ2yRhPR8 pic.twitter.com/fnpWuZW95t
— Tether (@tether_to) June 5, 2023
The initiative aims to mine the first cryptocurrency using renewable energy from the sun and wind. The power of the facility should be 241 MW, the hash rate is 1.3 EH / s.
The project raised $250 million in the first stage. Tether did not disclose its share of investments.
According to the statement, the company will act as an investor and advisor. The initiative is implemented in the form of a public-private partnership.
Before we get into specifics, let’s go high level stats.
– 241MW Total Renewables
— 169MW of Solar
— 72MW of Wind
– Projected 1.3EH/s Hash Power.
— $1bn Committed with $250mm in hand.
– 23% gov’t owned.
– 27% investor owned.
– 50% reinvested in energy production (good).2/
— Rob W. (@BikesandBitcoin) June 5, 2023
Josu Lopez from El Salvador became the CEO of Volcano Energy, the board of directors was headed by the American TV presenter and founder of Heisenberg Capital Max Kaiser.
“Volcano Energy represents one of the most innovative and strategic initiatives we have invested in. We look forward to working with Lopez and his team to make El Salvador a global force in renewable energy production. This investment continues Tether’s journey to diversify its strategic ecosystem,” said USDT issuer CTO Paolo Ardoino.
In May, he said that Tether’s profitability allows the company to consider business diversification opportunities beyond the stablecoin offering. Ardoino identified energy, data exchange and financial infrastructure as priority areas.
Robert Warren, a partner at the American firm Distributed Hash, drew attention to the fact that Volcano Energy is more of an energy facility than a mining facility. To provide a hash rate of 1.3 EH / s with the latest generation devices (~ 13,000 units), a power of approximately 52 MW is required.
Ok, let’s get specific now.
Working backwards (conservatively):
– 1.3EH/s would be 1.3mm TH
— That’s 13,000, 100T Machines
— Assuming 250 machine per MW
— That’s 52MW of power.Wait…. I thought they were building 241MW?!
— Rob W. (@BikesandBitcoin) June 5, 2023
Recall that earlier the authorities of El Salvador began to develop bitcoin mining on the geothermal energy of volcanoes.
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