(MENAFN- CoinXposure)
A public-private partnership in El Salvador has received the first $250 million of its $1 billion commitment to create a bitcoin mining facility.
This initial funding injection launches a 241-megawatt (MW) power generation park in the Metapán region of the nation.
The site's operator, Volcano Energy, stated that the funds would be used to develop a solar- and wind-powered power generation park that will eventually fuel the Bitcoin mining operation.
On June 7, Volcano Energy chairman Max Keiser announced the news via Twitter.
Bitcoin mining utilizes powerful computers connected to a global network, consuming massive amounts of electricity.
Environmentalists have criticized the energy-intensive practice because it exacerbates deforestation and climate change.
Tether, an issuer of stablecoins , is among the investors in the initial financing round for the development of Volcano Energy, although the amount of its investment is undisclosed.
Paolo Ardoino, the chief technology officer of Tether, stated that the investment signifies the stablecoin issuer's intention to promote investment in renewable energy production and mining infrastructure.
Volcano Energy reports that the 241 MW of power generation capacity will be split between 169 MW of photovoltaic solar energy and 72 MW of wind energy.
Tether estimates that the computing capacity of the park exceeds 1.3 exahashes per second. If attained, this would place Volcano Energy's cumulative Bitcoin mining hash rate among the top 20 worldwide pools.
According to Volcano Energy, the park is a pioneering example of Bitcoin mining powered by renewable energy, reflecting the industry's constant innovation and expansion:
See also esrb calls for increased scrutiny of crypto market 2 weeks ago
The government of El Salvador will play a crucial role in the planning and execution of the initiative, securing a preferred participation equal to 23% of revenues.
The remaining 50% will be reinvested into expanding energy production capacity and advancing Bitcoin mining.
As an advisor to President Nayib Bukele and the chairman of volcano energy , Bitcoin advocate and podcaster Max Keiser plays a pivotal role in El Salvador's adoption initiatives.
After becoming the first nation to make BTC lawful tender in 2021, the central american country continues its efforts to promote Bitcoin adoption.