KEY POINTS
El Salvador has effectively mined 474 Bitcoin by harnessing the geothermal energy from its Tecapa volcano. This has not only increased the country’s Bitcoin reserves to around $354 million but has also solidified its leadership in eco-friendly cryptocurrency mining practices.
Tapping into the Volcanic Geothermal Power
Since 2021, El Salvador has been leveraging the geothermal energy from its volcanoes to support its Bitcoin mining activities. This approach involves the use of 300 mining processors, drawing from 1.5 megawatts (MW) out of the 102 MW generated by the government-owned geothermal facility.
This sustainable energy strategy marks a notable departure from the conventional, and frequently condemned, reliance on fossil fuel-based mining techniques.
The Central American country drew international attention when it became the pioneer in adopting Bitcoin as a legal tender. Despite receiving criticism from global institutions such as the World Bank, President Nayib Bukele’s government has stayed resolute in its dedication to incorporating Bitcoin into the national financial system.
An Environmentally -conscious Approach to Bitcoin Mining
The mined Bitcoins, worth an estimated $30 million, reflect El Salvador’s innovative approach to addressing the environmental concerns associated with cryptocurrency mining. Through the use of renewable energy, the nation is establishing a model for others to emulate.
This recent advancement follows El Salvador’s approval of its Volcano Bitcoin bonds by the Digital Assets Commission last December. After that, the nation unveiled its vision to build a “Bitcoin City,” leveraging renewable energy and innovation.
