El Salvador has made significant strides in its Bitcoin mining efforts, having mined a total of 474 BTC since 2021, according to a recent report from the Bitcoin Office. This government entity is responsible for overseeing all cryptocurrency-related projects in the country. The mining activities have been powered by geothermal energy derived from the Tecapa volcano.
The official data released by the power plant indicates that the government’s Bitcoin holdings are currently valued at over $354 million. In light of this, El Salvador has launched a new website dedicated to tracking its Bitcoin Treasury, showcasing the nation’s growing wealth.
President Bukele has expressed his intention to hold onto the country’s substantial Bitcoin holdings, further solidifying El Salvador’s position in the cryptocurrency market. The government has even installed 300 processors specifically for Bitcoin mining, highlighting its commitment to this venture.
El Salvador’s use of geothermal power for Bitcoin mining is particularly noteworthy. The state-owned power plant allocates 1.5 megawatts (MW) of its 102 MW production to cryptocurrency mining. This approach ensures that the mining operations are environmentally friendly and not reliant on non-renewable resources like oil or natural gas.
While the government is supportive of Bitcoin mining, El Salvador still imports a significant portion of its electricity. However, the country also benefits from hydroelectric and geothermal power, with the latter accounting for a quarter of its energy production due to its abundance of active volcanoes.
The Bitcoin mining process involves solving complex mathematical problems using computers, which consume a substantial amount of electricity. In an industry that often relies on polluting coal-fired power plants, El Salvador is setting an example by utilizing clean energy sources for its mining activities.
With its increasing Bitcoin holdings and commitment to clean energy mining, El Salvador has the potential to become one of the wealthiest countries in the world.