In a significant development, Volcano Energy, a company centered around renewable energy-based Bitcoin mining, has partnered with Luxor Technologies to inaugurate Lava Pool, marking El Salvador’s entry into the Bitcoin mining pool landscape. Volcano Energy, a startup, has clarified its exclusive focus on Bitcoin mining through this innovative pool.
Emerging from stealth mode in June with the backing of a Tether-supported $1 billion investment, Volcano Energy is in the process of setting up a 241-megawatt renewable energy mining facility in Metapan, drawing power from solar and wind sources. The inception of Lava Pool underscores the company’s ambitious drive to morph into a comprehensive Bitcoin entity, as articulated by CSO Gerson Martinez.
Elaborating on the venture, Martinez underscored the pool as a manifestation of El Salvador’s pioneering approach within the Bitcoin ecosystem. He accentuated the regulatory transparency and conducive business environment of the country, attributing them as foundational pillars that instill stability and predictability for Bitcoin-oriented enterprises.
Luxor Technologies, a notable name among the top ten Bitcoin mining pools globally, will extend hedging strategies for Bitcoin to participants of the Lava Pool, offering a cushion against the swings of market volatility. Luxor’s COO, Ethan Vera, highlighted the alignment of the venture with the larger goal of geographical decentralization inherent to Bitcoin mining. He expressed Luxor’s enthusiasm in joining hands with Volcano Energy to bring Lava Pool to life and bolster their overarching mission not just in El Salvador but across the broader contours of Latin America.
In a prior announcement, Volcano Energy pledged to channel 23% of its net income to the government of El Salvador. A segment of these proceeds is earmarked for the enhancement of the existing infrastructure for power transmission and distribution within the nation.