Key Points
- El Salvador mined almost 474 Bitcoins since 2021 thanks to a volcano-fueled geothermal power plant.
- Now, the country holds over 5,750 BTC.
According to the latest reports from Reuters, El Salvador mined nearly 474 Bitcoins worth over $29 million since 2021. The country used a volcano-fueled geothermal power plant at Tecapa Volcano.
The country’s geothermal power plants generate 102 megawatts of electricity, of which 1.5 megawatts are used for the process of Bitcoin mining.
The nation’s innovative use of geothermal energy for Bitcoin mining is an important development in the crypto industry. The successful operation in the country regarding mining only proves the potential for renewable energy sources in crypto mining.
This is a sector that has been highly criticized for high energy consumption and the innovative mining method comes in handy. Crypto miners’ activity has been highly scrutinized for their impact on power grids and carbon emissions.
El Salvador holds 5,750 Bitcoins
Recently, El Salvador launched its own proof-of-reserve website. It features tools that monitor the country’s Bitcoin holdings using on-chain data. The online Bitcoin Treasury offers real-time data regarding the country’s Bitcoin reserves.
Currently, the nation holds a bit over 5,750 BTC, according to the website, worth approximately $356,5 million at current prices.
At the moment of writing this article, BTC is trading close to $62k.
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According to the website, 473.5 BTC were powered by the geothermal energy generated by the volcano. The administration of Bitcoin enthusiasts, President Nayib Bukele, has reportedly installed 300 processors to mine Bitcoin from the volcano.
Back in 2021, El Salvador became the first country to adopt Bitcoin as a legal tender, alongside the US dollar which they adopted about two decades ago. This move earned the President’s government harsh criticism for embracing the volatility of crypto including from the IMF.
By adopting Bitcoin as a legal tender, the nation aims to promote financial inclusion while facilitating more efficient remittance payments and also attracting more financial innovation at the same time.
Innovative mining operations are welcomed in the Bitcoin mining scene. The other day, crypto analyst PlanB delivered optimistic predictions about the miners’ revenue which should recover two to five months after the halving event, according to history.
Also, James Butterfill, the head of research at CoinShares, addressed the upcoming shift of miners towards AI in energy-secure locations due to the potential for higher revenues.
