Cryptocurrency NewsTether invests in El Salvador’s $1B renewable energy project

Tether invests in El Salvador’s $1B renewable energy project

Stablecoin issuer Tether has revealed its partnership with El Salvador, a Bitcoin-friendly nation, to invest in a renewable energy initiative worth $1 billion. This move aligns with El Salvador’s ongoing efforts to promote Bitcoin adoption since it became the first country to accept BTC as legal tender three years ago. The collaboration aims to establish a renewable power generation precinct in Metapán, leveraging solar and wind energy to fuel and monetize Bitcoin mining operations.

Tether, along with other investors, will contribute to the initial capital raise for the development of Volcano Energy, a forthcoming 241-megawatt renewable energy park. Located in Metapán, the park will consist of 169 MW of photovoltaic solar energy and 72 MW of wind energy. The electricity generated will be utilized by Bitcoin mining farms in El Salvador, and Tether estimates that the computing power of the park will exceed 1.3 exahashes per second. This level of output would position Volcano Energy’s cumulative Bitcoin mining hash rate among the top 20 globally.

Paolo Ardoino, the Chief Technology Officer of Tether, emphasized that this investment demonstrates the stablecoin issuer’s commitment to promoting renewable energy production and mining infrastructure development. Josue Lopez, the CEO of Volcano Energy, envisions the park becoming a benchmark for Bitcoin mining powered by renewable resources, contributing to the ongoing innovation and competition in the sector. He predicts that the proportion of sustainable Bitcoin mining, currently at over 52%, will significantly rise in the future, driven by crucial investments like theirs.

The exact amount of Tether’s investment was not disclosed in their communication with Cointelegraph. Notably, Max Keiser, a prominent Bitcoin supporter and broadcaster, plays a key role in El Salvador’s adoption efforts as an adviser to President Nayib Bukele and the chairman of Volcano Energy. Additionally, Saifedean Ammous, an economist and author of “The Bitcoin Standard,” has joined El Salvador’s governance as an economic adviser to the National Bitcoin Office.

The proliferation of Bitcoin and its widespread use in El Salvador presents an intriguing narrative, as previously explored by Cointelegraph’s Joe Hall during his visit to the Central American country in 2022.


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