El Salvador, known for its bold move to adopt Bitcoin as legal tender, has emerged as a significant player in the world of Bitcoin mining.
Based on the Bitcoin Office dashboard, the country has been actively involved in Bitcoin mining, utilizing geothermal energy generated by the Tecapa volcano. The country has reportedly mined ~473 bitcoin since 2021, contributing to its 5,750 bitcoin holding, valued at over $370 million.
The official data released by the power plant highlights the government’s commitment to sustainable practices. With 1.5 megawatts (MW) of the plant’s total 102 MW dedicated to Bitcoin mining, El Salvador prioritizes environmental preservation while embracing the Bitcoin revolution.
Back in 2021, Daniel Álvarez, president of the Rio Lempa Hydroelectric Executive Commission overseeing the power plant, emphasized the importance of renewable resources in bitcoin mining, stating:
“We don’t spend resources that contaminate the environment, we don’t depend on oil, we don’t depend on natural gas, on any resource that isn’t renewable.”
The south American country’s geothermal energy strategy for Bitcoin mining is successful due to its 20 active volcanoes, allowing it to harness geothermal power as a clean and sustainable energy source.
Notably, the nation imports 7.4% of its total energy consumption, while the rest is generated by hydroelectric, geothermal, and fossil fuel-fired power plants.
As per the official data, geothermal energy constitutes around 22% of the country’s total energy output.
Despite the widespread use of fossil fuels in the energy sector, El Salvador aims to use clean geothermal power to reduce its environmental footprint while contributing to the growth of the digital asset industry.
President Bukele’s administration has played an important role in promoting Bitcoin mining in El Salvador, installing 300 operations to mine bitcoin directly from the Tecapa volcano. The President Bukele has also expressed no intention of selling the country’s bitcoin holdings, which now boast an unrealized profit of over $57.4 million.
El Salvador has recently launched a website for tracking its bitcoin Treasury, providing transparency and public accountability to its citizens and the community at large by offering real-time updates on the nation’s bitcoin wealth.
El Salvador’s move into Bitcoin mining is part of its larger plan for economic development and sustainability.
This move is a part of President Nayib Bukele’s ambitious Bitcoin City project announced in 2021, which aims to draw global investment with substantial tax incentives and position El Salvador as a frontrunner in blockchain technology.
The country’s pro-Bitcoin stance is evident by its actionable positive response to embrace Bitcoin. As the nation state continues to expand its bitcoin holdings and embrace clean energy solutions, it emerges as a bitcoin powerhouse.
