El Salvador-based Volcano Energy, a company specializing in renewable energy and mining, and bitcoin mining software provider Luxor Technology, have unveiled the “Lava Pool”. This cryptocurrency mining pool is the first in El Salvador and will utilize the country’s rich geothermal resources to mine Bitcoin.

According to the official announcement, Volcano Energy will mine bitcoins exclusively through this pool and plans to donate 23% of net profits to the Salvadoran government as part of their public-private partnership.

In 2021, El Salvador became the first country to recognize Bitcoin as an official means of payment. The same year marked the start of Bitcoin mining using geothermal energy extracted from the country’s volcanoes. Plans to issue “bitcoin bonds” were also announced in 2022.

“Lava Pool” is another example of how El Salvador is actively incorporating Bitcoin into its national ecosystem. As Volcano Energy CEO, Gerson Martinez emphasized, “We aim to create a vertically integrated energy and bitcoin mining company that benefits both investors and all Salvadoran citizens.”

The Lava Pool initiative fits into El Salvador’s strategy to integrate Bitcoin into the country’s energy infrastructure. This will ensure that vast renewable resources can be utilized for cryptocurrency mining. Mining can also be an important source of revenue for new energy projects, especially in remote and inaccessible areas of the country where there can be problems with electricity supply during peak demand periods.

As emphasized in an official statement, the Salvadoran government intends to reinvest the profits from cryptocurrency mining generated through this partnership into the country’s energy infrastructure to stimulate economic growth.
Volcano Energy received a $1 billion investment from Tether Energy in June, with $250 million already committed to the development of renewable energy and bitcoin mining in El Salvador.