Energy company launches first Bitcoin mining pool in El Salvador, sharing 23% of profits with the country annually.

There is still not much information disclosed about El Salvador's volcano mining project, the primary source of energy for the first Bitcoin mining pool will temporarily be solar and wind power, and it is uncertain whether El Salvador and the energy company Volcano Energy can effectively utilize geothermal power from volcanoes.

El Salvador's First Bitcoin Mining Pool

As part of the volcano energy mining project, energy company Volcano Energy has announced a partnership with mining service provider Luxor Technology to launch the first Bitcoin mining pool in El Salvador.

In addition to utilizing volcano energy to mine Bitcoin, Volcano Energy plans to mitigate market volatility by leveraging Luxor's hashrate futures market and automated risk management strategies in the future.

The first phase of the volcano energy project includes establishing a 241-megawatt renewable energy park in the northwestern town of Metapan in El Salvador, comprising 169 megawatts of solar energy, 72 megawatts of wind energy, with the long-term goal of harnessing volcano geothermal energy.

The Chief Strategy Officer of Volcano Energy stated:

We hope to bring more value to investors and the citizens of El Salvador.

Ethan Vera, the COO of Luxor, pointed out that the launch of El Salvador's first mining pool contributes to promoting the decentralized spirit of Bitcoin geographically.

🇸🇻Excited to announce the launch of Lava Pool in collaboration with @LuxorTechTeam. By launching the first #Bitcoin mining pool from El Salvador, we aim to further decentralize bitcoin's hashrate, and to strengthen the country's energy infrastructure. 🌋⛏️ https://t.co/Ef9okyBI5y

— Volcano Energy 🇸🇻🌋🔌 (@Volcano_Energy) October 4, 2023

Mining Profits Donated to El Salvador

According to Cointelegraph, as part of the partnership, Volcano Energy may contribute 23% of the net mining income to the government of El Salvador, with 27% going to investors, and the remaining 50% of mining profits reinvested in energy infrastructure to stimulate the Salvadoran economy and the growth of related technologies.

Tether, the stablecoin issuer, is also one of the investors in El Salvador's volcano mining:

Tether participates in El Salvador's Bitcoin volcano mining, has the $1 billion Bitcoin bond finally been issued?

Not much information has been disclosed about El Salvador's volcano mining project, and it remains to be seen whether El Salvador and energy company Volcano Energy can effectively utilize volcano power generation.

El Salvador's President Nayib Bukele has not made any statements regarding this.