Volcano Energy and Luxor Technology have launched the first Bitcoin mining pool in El Salvador. It will seek to benefit from geothermal energy coming from the volcanoes of the Central American country.
In the official statement, which CryptoNoticias had access to, this is detailed Public and private equity firm Volcano Energy ‘will only mine Bitcoin through Lava Pool’. It should be noted that 23% of the profits achieved by Volcano Energy belong to the government of El Salvador, one of the founding parties of the company.
Luxor Technology’s role at Lava Pool is to provide a “reliable, frictionless service, given the company’s track record in Bitcoin mining software and services.”
In this way, El Salvador is complying with what it announced in July 2023, when its Bitcoin mining pool project was announced. As described on CriptoNoticias at the time, The Lava Pool will complement the Bitcoin mining farm being built in MetapanWhich required an investment of US$1,000 million and will be powered by solar and wind energy.
This farm will provide 1.3 EH/s (hexa hashes per second) of hash rate to the Bitcoin network and will have a final power of 241 megawatts (MW) when completed.
“In countries with abundant renewable energy sources, such as El Salvador, Bitcoin miners can improve the economics of new energy projects by presenting themselves as a flexible buyer of first and last resort,” explains the statement from Volcano Energy and Luxor. “Miners generate immediate revenue for new energy projects, especially in remote areas of the country, and also provide a resilient load that can be shut off immediately to support the grid during times of stress,” they add.
According to the same document, El Salvador plans to reinvest mining profits into energy transmission and distribution infrastructure In his country.
El Salvador is moving forward in its adoption of Bitcoin
As detailed in Cryptopedia, the educational section of CryptoNoticias, A Bitcoin mining pool brings together a group of miners who pool their resources To increase your chances of successfully mining a block on the Bitcoin network and thus receiving the corresponding reward. Instead of competing individually with each other, miners work in a group together to find the hashrate it takes to mine Bitcoin, and then distribute the rewards proportionally based on the hash power each contributes.
Lava Pool is the first pool of this type in El Salvador. Regarding the project in particular, Gerson Martinez, Chief Security Officer (Security Director) of Volcano Energy, emphasized that “Lava Pool is another example of El Salvador’s first-step advantage as a nation-state in the Bitcoin ecosystem.” “Our vision is to create a vertically integrated Bitcoin mining and energy company, whose value is accretive to investors and all Salvadoran citizens,” he added.
For his part, Ethan Vera, COO (COO) of Luxor, commented, “The spirit of Bitcoin mining revolves around geographical decentralization, and developing the infrastructure of the mining complex in El Salvador will contribute to achieving this goal.”