El Salvador Launches First Volcano-Powered Bitcoin Mining Pool - Here's What You Need to Know
On October 4, El Salvador announced the launch of Lava Pool, the country's first Bitcoin mining pool powered entirely by renewable geothermal energy. The venture represents an important milestone in El Salvador's efforts to integrate Bitcoin into its energy infrastructure.
The Lava Pool project is a combined effort of the energy firm Volcano Energy and tech giant Luxor Technology. Together, they seek to tap into the rich reservoir of geothermal energy, making the mining of cryptocurrency more environmentally friendly.
The renewable energy Bitcoin mining pool will be maintained by Volcano Energy, a public-private partnership that has pledged to commit 23% of its net income to the Salvadoran government.
The pool will also benefit from Luxor Technology's Hashrate Forward Marketplace, a hedging mechanism already adopted by major players in the Bitcoin mining industry to protect against market volatility.
Gerson Martinez, Volcano Energy's Chief Strategy Officer, highlighted the importance of this project in the press release, stating Lava Pool is another step toward building a fully integrated Bitcoin company.
"Our vision is to create a vertically integrated energy and bitcoin mining company whose value is accretive to investors and to all Salvadoran citizens," Martinez said.
Lava Pool emphasizes the country's commitment to merging Bitcoin into its energy infrastructure, which could substantially improve the economics of new energy projects, especially in remote regions. It also provides immediate revenue and flexible load management capabilities to support the grid during high demand.
Lava Pool represents just one component of Volcano Energy's strategy to build a global Bitcoin mining operation powered entirely by renewable
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