El Salvador has successfully mined 474 BTCs since the beginning of 2021, making it the proud holder of 5,750 Bitcoins, according to a report from the Bitcoin Office. This government entity is responsible for overseeing all cryptocurrency-related projects in the country.
The mining process in El Salvador is fueled by geothermal power derived from the Tecapa volcano. The official data from the power plant, released on Tuesday, reveals that the government’s Bitcoin holdings are currently valued at over $354 million. In light of this, the nation has launched a website to track its Bitcoin Treasury.
These impressive Bitcoin holdings, along with the introduction of the memepool website, suggest that El Salvador could potentially become one of the wealthiest countries in the world.
Interestingly, President Bukele has made it clear that he has no intentions of selling the country’s extensive Bitcoin holdings. The Bukele administration has installed 300 processors to mine Bitcoins from the volcano, further solidifying their commitment to the cryptocurrency.
El Salvador’s Bitcoin mining is largely powered by the geothermal state-owned power plant, which allocates 1.5 megawatts (MW) of its 102 MW production capacity to cryptocurrency mining. This approach ensures that the environment is not harmed and that the nation’s energy sources are renewable.
President of the Rio Lempa Hydroelectric Executive Commission, Daniel Álvarez, emphasized in a 2021 interview with AP News that El Salvador does not rely on non-renewable resources such as oil or natural gas for its Bitcoin mining operations.
While the Salvadoran government shows great support for Bitcoin mining, the nation still imports a significant portion of its electricity, approximately one-fifth to one-quarter. The remaining electricity production is divided among hydroelectric, geothermal, and fossil fuel-fired plants. Geothermal energy accounts for about a quarter of the country’s energy production, thanks to its 20 active volcanoes.
The geothermal turbines in El Salvador currently power around 300 computers that are used for Bitcoin mining. The process of mining Bitcoins involves solving complex mathematical problems, which requires a substantial amount of electricity.
In a time when the Bitcoin mining industry heavily relies on polluting coal-fired power plants, the Salvadoran government stands out by promoting the use of clean energy for local mining operations.
