Volcano Energy and Luxor Launch First Bitcoin Mining Pool in El Salvador
Salvadoran renewable energy and mining firm, Volcano Energy, has partnered with Bitcoin mining software provider Luxor Technology to launch "Lava Pool," the first cryptocurrency mining pool based in El Salvador. Lava Pool aims to harness the country's abundant geothermal energy resources for Bitcoin mining.
Under this initiative, Volcano Energy will exclusively mine Bitcoin through the pool and contribute 23% of its net income to the government of El Salvador as part of a public-private partnership. Volcano Energy is co-led by Josue Lopez, a 23-year-old Bitcoin advocate from El Salvador serving as CEO, and Max Keiser, chairman and advisor to El Salvador President Nayib Bukele. El Salvador made history in 2021 by recognizing Bitcoin as legal tender and initiated Bitcoin mining using geothermal energy from its volcanoes. It also announced plans for "Bitcoin bonds" in 2022.
Gerson Martinez, CSO of Volcano Energy, emphasized that Lava Pool highlights El Salvador's pioneering role in the Bitcoin ecosystem, with the vision of creating an integrated energy and Bitcoin mining company that benefits both investors and Salvadoran citizens.
Luxor, known for its Bitcoin mining pool, will provide Volcano Energy with advanced hedging strategies through its Hashrate Forward Marketplace to mitigate Bitcoin price volatility and manage risk.
Ethan Vera, COO of Luxor, highlighted the importance of geographical decentralization in Bitcoin mining and the contribution of mining pool infrastructure in El Salvador to this goal. The "Lava Pool" project aligns with El Salvador's efforts to incorporate Bitcoin into its energy infrastructure, acting as a primary buyer for the country's renewable energy resources. Mining can generate revenue for new energy projects, particularly in remote areas, with the flexibility to reduce energy consumption during peak demand.
The El Salvador government plans to reinvest mining profits back into its energy infrastructure to stimulate economic growth, emphasizing the mutually beneficial relationship between cryptocurrency mining and sustainable energy development.
In June, Volcano Energy secured $1 billion in investment commitments, led by Tether Energy, with $250 million already deployed for developing renewable energy and Bitcoin mining operations in El Salvador.