Tether, a stablecoin issuer, has revealed that it will collaborate with El Salvador, a country that accepts bitcoins, to invest in a projected $1 billion renewable energy project.
Tether is one of the investors in a first-round capital raise for the construction of Volcano Energy, an upcoming 241 MW renewable energy facility. The plant, which is in Metapán, will have 169 MWs of solar photovoltaic energy and 72 MWs of wind energy.
The electricity generated will power Bitcoin mining operations in El Salvador; according to Tether, the park’s processing capability exceeds 1.3 exahashes per second. With this result, Volcano Energy’s total Bitcoin mining hash rate would rank in the top 20 pools active worldwide.
About the Initiative
According to the company behind it, “Volcano Energy,” the project’s main objective is to “position El Salvador as a prominent global player in the Bitcoin mining industry.”
The declaration by Volcano Energy comes precisely two years after El Salvador’s president, Nayib Bukele, said that starting in June 2021, Bitcoin would be accepted as legal cash throughout the nation.
With the help of “key Bitcoin industry leaders” and “top manufacturers” of Bitcoin industry technology, the company has so far raised $250 million for the project.
The effort will be planned and carried out by the government of El Salvador, which will also get 23% of the Bitcoin revenue it generates. The remaining 27% of profits will be distributed to investors, and the remaining 50% will be used to expand the mining industry’s infrastructure.
More than a dozen volcanoes exist in El Salvador, and the country’s government has already shown how they might be utilized to mine BTC.
