The bitcoin mining center with a capacity of 241 MW will operate on the basis of renewable energy sources

​Tether to invest in the construction of a $1 billion mining farm in El Salvador

06.06.2023 - 10:20

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4 min

What’s new? On June 5, Tether, the USDT stablecoin issuer, announced its participation in the first round of investments in a new $1 billion bitcoin mining project in El Salvador. The farm, called Volcano Energy, will use exclusively renewable energy sources in its operations. The total capacity of the mining center is expected to be 241 MW.

News on the Tether website

Tether is the largest issuer of stablecoins in the crypto market. Centralized USDT, which is pegged to the US dollar, as of June 6, ranks third in the overall cryptocurrency ranking with a capitalization of $83,24 billion.

What else is known? Tether noted its commitment to its mission to invest in renewable energy to support and promote sustainable bitcoin mining. By integrating solar and wind power projects in El Salvador’s volcanic region, the company aims to play a key role in creating one of the world’s largest bitcoin mining farms.

The site, located in the municipality of Metapán, has two hubs for construction, one with 169 MW of photovoltaic solar energy and the other with 72 MW of wind energy. This will achieve an initial computation power of more than 1,3 EH/s.

“We are excited to be among the initial pioneers of renewable energy in El Salvador as an equity investor and advisor. Volcano Energy represents one of the most ground-breaking and strategic initiatives we are investing in,” commented on the collaboration Paolo Ardoino, Chief Technology Officer at Tether.

According to Volcano Energy CEO Josue Lopez, more than 52% of mining is now done on a sustainable basis. He expects the figure to increase significantly in the coming years, thanks to projects such as the El Salvador mining farm.

“Not only is “Volcano Energy” important for the future of Bitcoin resiliency, it’s also an important sign of the new crucial role that El Salvador plays in the global tech environment,” Lopez added.

Max Keiser, Chairman of Volcano Energy, believes that once the project is launched, El Salvador will be known globally not only as the “Bitcoin country,” but also as a “Bitcoin mining country.”

The country was the first in the world to recognize bitcoin as legal tender in September 2021, after which authorities began regularly purchasing the asset with budget funds. Since the cryptocurrency’s legalization, the flow of tourists to the country has doubled since March 2023, according to President Nayib Bukele.

Moreover, in April of this year, the crypto exchange Bitfinex, which, like Tether, is a subsidiary of iFinex, was the first to receive a license to operate in El Salvador.

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In May, Tether announced investments in power production and the launch of a bitcoin mining project in Uruguay. The project is designed to promote sustainable BTC mining, which is “an essential component in upholding the world’s most robust and secure monetary network,” the company said.

Also since May, Tether began regularly allocating up to 15% of its profits to BTC purchases to strengthen and diversify its reserves. The company posted just under $1,5 billion in revenue in the first quarter.

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