El Salvador Mines 474 BTC with Sustainable Geothermal Power

El Salvador has successfully mined 474 bitcoins (BTC) since September 2021, utilizing geothermal energy sourced from the Tecapa volcano. This innovative approach has generated approximately $29 million in value, significantly boosting the country's cryptocurrency reserves, which now total 5,750 BTC, worth around $354 million.

This venture is part of a collaborative effort between the Salvadoran government and several prominent cryptocurrency mining companies, including Foundry USA, Antpool, ViaBTC, F2Pool, and Binance Pool. The initiative leverages the geothermal power produced by a state-owned facility, which generates 102 megawatts (MW) of energy, with 1.5 MW specifically allocated for bitcoin mining operations. President Nayib Bukele's administration has installed 300 specialized mining processors to optimize this process.

El Salvador made headlines in 2021 when it became the first country to adopt bitcoin as legal tender, a move that has faced criticism from various international organizations, including the International Monetary Fund (IMF). Despite this, Bukele has remained a staunch advocate for bitcoin, implementing a strategy to purchase one BTC daily as part of a national Dollar-Cost Averaging approach. This strategy has reportedly led to unrealized profits exceeding 43% on the country’s bitcoin holdings.

The use of geothermal energy for mining positions El Salvador as a pioneer in sustainable cryptocurrency practices, contrasting sharply with the global scrutiny surrounding the environmental impact of traditional bitcoin mining methods. By harnessing renewable energy, the country aims to set a precedent for eco-friendly crypto mining, showcasing how nations can leverage natural resources to support digital currencies while addressing environmental concerns.

As El Salvador continues to navigate the complexities of cryptocurrency adoption, its geothermal mining initiative may serve as a model for other countries seeking to balance innovation with sustainability.