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El Salvador Launches First Bitcoin Mining Pool 'Lava Pool' with Volcano Energy

The "Lava Pool" initiative: Harnessing El Salvador's geothermal energy for sustainable Bitcoin mining.

In collaboration with Bitcoin mining software provider Luxor Technology, Salvadoran renewable energy and mining firm Volcano Energy has introduced a groundbreaking initiative called "Lava Pool." This milestone marks the establishment of the very first cryptocurrency mining pool in El Salvador.

According to Investing, the primary objective of this venture is to leverage the country's abundant geothermal energy to mine Bitcoin effectively.

Volcano Energy and Luxor's Contribution

Volcano Energy commits to mining Bitcoin exclusively through the "Lava Pool" and pledges to allocate 23% of its net income to the El Salvador government. This financial contribution is part of a larger public-private partnership initiative to strengthen the nation's economy.

Volcano Energy is co-led by Josue Lopez, a 23-year-old Bitcoin advocate from El Salvador, serving as the CEO. Additionally, renowned figure Max Keiser, who acts as chairman and advisor to El Salvador President Nayib Bukele, lends guidance and expertise to the project.

"Lava Pool is another example of El Salvador's first mover advantage as a nation-state in the Bitcoin ecosystem," The Block quoted Volcano Energy CSO Gerson Martinez.

Having already developed its own Bitcoin mining pool, Luxor Technology brings a wealth of knowledge and experience to the partnership. Through its existing Hashrate Forward Marketplace, Luxor assists Volcano Energy in employing advanced hedging strategies, mitigating bitcoin price volatility, and managing risk.

Integrating Bitcoin into El Salvador's Energy Infrastructure

El Salvador made international headlines in 2021 by granting Bitcoin legal tender status, a historic milestone. Building upon this achievement, the country began mining Bitcoin, leveraging its geothermal energy from volcanoes. Furthermore, the government aims to issue "bitcoin bonds" in 2022, signaling its dedication to exploring innovative financial avenues.

The inception of the "Lava Pool" initiative aligns with El Salvador's overarching plan to integrate Bitcoin into its energy infrastructure. By providing a "buyer of first and last resort," the country can tap into its vast renewable energy resources. Mining activities generate vital revenue for new energy projects, particularly in remote and untapped regions, while offering the flexibility to power down during peak demand.

Reinvesting Mining Profits for Economic Growth

The El Salvador government intends to reinvest the mining profits from this partnership into its energy infrastructure. This reinvestment strategy aims to bolster economic growth and pave the way for further advancements in the country's renewable energy sector.

In June, Volcano Energy secured $1 billion in investment commitments, with Tether Energy leading the charge. Already deploying $250 million towards developing renewable energy and Bitcoin mining operations, these investments will undoubtedly catapult El Salvador's efforts to the next level.

Photo: Dmytro Demidko/Unsplash

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