Public-private partnership in El Salvador will invest $1 billion to create one of the largest the world of bitcoin mining farms, a group called Volcano Energy has announced.
The project will start with an initial 250 milliondollars backed by key leaders in the bitcoin industry in collaboration with renewable energy developers, Volcano Energy said in a statement. El Salvador's state "Bitcoin office" retweeted the news on its Twitter. The country is known for its loyal attitude towards cryptocurrencies.
Funds will be used to build the park.power plants using solar and wind energy, which will eventually power a bitcoin mining farm. Bitcoin mining uses powerful computers connected to the global network, while consuming a huge amount of electricity.
Earlier, the President of El Salvador, Naib Bukele, announcedits intention to make bitcoin legal tender. While the International Monetary Fund cautioned against acceptance due to legal risks, financial instability and a speculative market. Bukele and his bitcoin proponents said the currency could bring jobs, financial inclusion and foreign investment to one of the poorest countries in the Western Hemisphere.
According to Volcano Energy, the governmentEl Salvador will have a preferred stake equivalent to 23% of the proceeds in the project, while private investors will own 27%. The remaining 50% will be reinvested back into infrastructure.