The Salvadoran government’s Bitcoin mining project Volcano Energy, in partnership with Luxor Technology, has presented the country’s first mining pool Lava Pool. Cointelegraph reports.
In the context of the public-private partnership, the entity has committed to paying 23% of net income to the government. The funds will be invested in energy infrastructure to sustain economic growth.
Lava Pool will use Luxor’s mining software and the company’s hedging strategies to protect clients from market volatility risks.
In June, the Salvadoran authorities announced the project to mine the first cryptocurrency using renewable energy sources.
In the first round of Volcano Energy’s financing totaling $1 billion, participated by Tether—the issuer of the stablecoin USDT. The firm acts not only as an investor but also as an advisor.
At the initial stage, the facility’s power consumption will be 241 MW, with a hashrate of 1.3 EH/s.
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\”Our mission is to create a vertically integrated Bitcoin mining energy company, the value of which will grow for investors and all Salvadoran citizens,\” said Gerson Martinez, Volcano Energy’s Chief Strategy Officer.
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In September 2021, El Salvador became the first country in the world to legalize digital gold as a legal means of payment.
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Experiments with Bitcoin mining on geothermal volcanic energy by the state-owned company LaGeo began in October of the same year.