El Salvador has mined nearly 474 bitcoins worth almost $29 million over the past three years, thanks to a volcano-powered geothermal power plant.
The recent addition brings the value of the country’s total Bitcoin portfolio to nearly $354 million at current prices, with the country’s Bitcoin Office holding a total of 5,750 BTC.
El Salvador Adds To Bitcoin Holdings
El Salvador’s decision to grant Bitcoin the status of legal tender was met with criticism, but it has proven to be a lucrative move. Since the announcement, the country has steadily accumulated BTC. Recent reports reveal that El Salvador has added an additional 473.5 Bitcoins worth $29 million since September 2021. This brings the count of BTC held by El Salvador to 5,750 BTC, worth around $354 million at current prices. These financial gains underscore the potential of Bitcoin mining for the country.
The newly mined Bitcoins were made possible thanks to a unique and innovative approach. A small amount of geothermal energy generated by the country’s Tecapa volcano is harnessed, providing a green and eco-friendly way for El Salvador to accumulate Bitcoin. This method sets El Salvador apart in the world of Bitcoin mining, where energy consumption is a major concern.
A Green Initiative
El Salvador president Nayib Bukele, who was recently re-elected for a second term, had directed his administration to install 300 processors to mine Bitcoins from the volcano. The state-owned power plant produces 102 megawatts of energy, out of which 1.5 megawatts are dedicated to cryptocurrency, namely Bitcoin mining. The mining process requires miners to expend a significant amount of energy for computing and cooling data processing centers. These centers solve complex mathematical equations and mine cryptocurrencies called Bitcoin. The entire mining process is known as Proof-of-Work.
Cryptocurrency mining has come under increased scrutiny by governments due to its high power consumption and carbon emissions. However, El Salvador’s innovative green method has the potential to change the game. By amassing Bitcoin while significantly reducing its environmental impact, El Salvador is on the brink of transforming the perception of cryptocurrency mining. This development offers hope for a more sustainable future in the crypto industry.
Meanwhile, cryptocurrency miners Foundry USA, ViaBTC, Ant pool, F2Pool, and Binance Pool have pooled their resources to win a reward for opening a blockchain that can verify the last three years of bitcoin transactions from the power plant, according to a statement by the country’s Bitcoin Office.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
