El Salvador has ramped up its Bitcoin holdings by mining nearly 474 bitcoins since 2021, leveraging geothermal energy from the Tecapa volcano, Reuters said.
The country allocated 1.5 megawatts from its 102-megawatt geothermal power plant for mining, generating $29 million worth of Bitcoin using 300 processors. This development positions El Salvador as a leader in sustainable cryptocurrency mining.
El Salvador’s embrace of Bitcoin began in 2021 when it became the first nation to adopt it as legal tender. This move, along with subsequent Bitcoin-focused policies like the geothermal mining project, attracted criticism from organizations like the World Bank. The recent bear market further intensified scrutiny towards President Nayib Bukele’s Bitcoin strategy.
Despite the criticism, Bukele remains committed. He secured re-election earlier this year with promises to promote Bitcoin and fight crime. His administration even pledged to buy one Bitcoin daily.
This news comes amidst ongoing debates about Bitcoin mining’s environmental impact. Traditionally, the process relies heavily on fossil fuels, raising concerns. Groups like the Ripple-backed Greenpeace advocate for transitioning to more sustainable methods, while some U.S. states have even banned Bitcoin mining.
