El Salvador, which became the first country to use Bitcoin (BTC) as legal tender, could easily be in possession of 5750 Bitcoins, according to a Bitcoin Office report. The National Bitcoin Office is a government entity tasked with managing all cryptocurrency-related projects.
According to a Reuters report, the nation has mined nearly 474 Bitcoins since 2021, using geothermal energy powered by the Tecapa volcano.
Official data from the power plant released Tuesday shows that government shares are worth more than $354 million at current prices. With its pool of BTC wealth, the nation launched a website on Tuesday to track its Bitcoin vault.
The country’s current Bitcoin holdings and the launch of the website mean that El Salvador could eventually become one of the richest countries in the world.
Interestingly, President Bukele also stated that there are no plans to sell the country’s vast Bitcoin resources. The report added that the Bukele administration has installed 300 processors to mine bitcoin using energy from the volcano.
Bitcoin mining in El Salvador from geothermal energy
A state-owned geothermal power plant is dedicating 1.5 megawatts (MW) to mining cryptocurrencies from its 102 MW.
“We don’t waste resources that pollute the environment, we don’t depend on oil, we don’t depend on natural gas or any resources that are not renewable,” Daniel Álvarez, chairman of the Rio Lempa Hydropower Executive Commission, which oversees the plant, in an interview with AP News in 2021.
Bitcoin mining in El Salvador appears to have the support of the government in Bukele. However, when it comes to cheap electricity, the country imports about one-fifth to one-quarter of the electricity it produces. The rest of the electricity production is split between hydroelectric, geothermal and fossil fuel-fired power plants.
Among these, geothermal energy accounts for about a quarter of the country’s energy, given that El Salvador has 20 active volcanoes.
According to a 2021 report, energy generated by geothermal turbines is used by about 300 computers. Bitcoins are “mined” using computers that solve complex mathematical problems and require large amounts of electricity to operate.
In an industry that still relies heavily on polluting coal-fired power plants, the Salvadoran government is encouraging the use of clean energy in local mining.
