Key Takeaways
- El Salvador plans to rent volcanoes for geothermal Bitcoin mining.
- The initiative builds on geothermal energy success that mined 474 BTC.
- The country holds over 5,900 BTC with unrealized profits of $168M.
El Salvador is exploring an ambitious new initiative to revolutionize Bitcoin mining by renting out its 170 volcanoes to miners.
President Nayib Bukele shared the idea on Nov. 25, suggesting that these natural energy sources could offer a sustainable and cost-effective solution for global Bitcoin mining operations.
Background
The concept builds on El Salvador’s success in using geothermal energy for mining, which has already yielded 474 BTC, valued at $46 million.
Bukele’s proposal inspired Daniel Alvarez, the nation’s Director General of Energy, Hydrocarbons, and Mines, to announce plans for drafting a new geothermal energy law to enable the program.
Bukele, envisioning a groundbreaking model for sustainable Bitcoin mining, stated on social media:
This program could make sense with our vast energy reserves.
Public reaction
The initiative has been praised by Max Keiser, a senior Bitcoin advisor, who believes it will solidify El Salvador’s position as a leader in global Bitcoin adoption.
Keiser said:
Rent-a-volcano will put El Salvador in the lead in the Bitcoin per capita race.
Unrealized gains
The announcement coincides with significant unrealized gains in El Salvador’s Bitcoin holdings.
According to NayibTracker, the country’s stash of over 6,000 BTC has accrued an unrealized profit exceeding $168 million.
Official data from the nation’s Bitcoin Office lists 5,932 BTC, valued at $585.2 million.
Since adopting Bitcoin as legal tender in 2021, El Salvador has remained committed to its pioneering path, despite criticism from global financial institutions like the IMF.
