Invested more than 35 billion yen in Volcano Energy
Tether, which issues the US dollar stablecoin “USDT”, announced on the 5th that it has invested in a startup company “Volcano Energy” aiming to build a Bitcoin (BTC) mining farm in El Salvador.
Tether Energy is doubling down on #bitcoin with our investment into Volcano Energy in El Salvador 🌋🇸🇻 We’re fueling sustainable Bitcoin mining and supporting El Salvador’s economic growth🍊⛏️
Learn more 👉 https://t.co/PlJ2yRhPR8 pic.twitter.com/fnpWuZW95t
— Tether (@Tether_to) June 5, 2023
Tether says it will “support sustainable Bitcoin mining and economic growth in El Salvador.” It is a form of investment equivalent to about 35 billion yen ($250 million) in Volcano Energy’s initial investment round of about 130 billion yen ($1 billion).
Volcano Energy is a company co-led by El Salvador’s CEO Josue Lopez, a bitcoin advocate, and Max Kaiser, who also serves as an adviser to President Bukele of the country.
Volcano Energy plans to build a 241 megawatt (MW) bitcoin mining facility in Metapan, Santa Ana, El Salvador. Comprising 169 MW of solar and 72 MW of wind, it is estimated to have an initial computing power of over 1.3 EH/s (exahash/second).
1EH/s is the ability to perform 10 quadrillion calculations per second.
Volcano Energy CEO Lopez commented:
Currently, over 52% of Bitcoin mining is done sustainably. Through businesses such as ours, we expect this percentage to increase significantly over the next few years.
Our company is not only important to Bitcoin’s flexibility, but it also marks the important new role El Salvador will play in the global technology landscape.
El Salvador has recognized bitcoin as legal tender alongside the US dollar, and in January passed the Digital Securities Law, which allows the government to issue bitcoin-backed bonds. Never.
connection: El Salvador Moves Forward to Issuing Bitcoin Bonds, Passes Digital Securities Bill
What is Bitcoin Law in El Salvador
Alongside the US dollar, it recognizes bitcoin as legal tender and stipulates that citizens can use bitcoin for all payment scenes. The bill, promoted by President Bukele of El Salvador, was passed by Congress on June 9, 2021. It was the first time that Bitcoin was officially recognized as a national legal tender.
Tether is expanding its mining business
In addition to capital, Tether plans to provide Volcano Energy with expertise in energy, hardware and communications. Tether Chief Technology Officer Paolo Aldoino explained:
Volcano Energy is one of the most groundbreaking and strategic initiatives we have invested in. We look forward to working with the Volcano Energy team to make El Salvador a global force in renewable energy production.
With this investment, Tether is strategically on the path to diversifying our ecosystem.
Tether has stakes in renewable energy sources around the world and aims to become a leading provider and investor in renewable energy and cryptocurrency mining infrastructure.
On May 30, it also announced that it would invest resources in Uruguay, South America, to work on energy production and sustainable bitcoin mining.
connection: Tether Invests Resources In Uruguay To Promote Sustainable Bitcoin Mining