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In three years, Salvador mined about 474 BTC

Since 2021, 473.5 BTC worth about $29 million has been produced in El Salvador at a state geothermal power plant using volcanic energy. Writes about this Reuters.

The country's National Bitcoin Office announced the launch of its own space in the Bitcoin mempool, where you can monitor the balance of cryptocurrency in the state treasury in real time. At the time of writing, the government holds ~5,748 BTC, valued at $352.3 million.

El Salvador began test mining of Bitcoin in October 2021, about a month after the law recognizing the first cryptocurrency as a legal means of payment came into force.

In June 2023, authorities announced the 241 MW Volcano Energy project, which involved the use of renewable energy sources for mining digital gold.

The total cost of the enterprise was declared at $1 billion, the state's share in it was 23%. Tether, which issues the stablecoin USDT, announced its participation in the first round of financing of Volcano Energy in the amount of $250 million. The company did not disclose its share.

According to Reuters, all of El Salvador's mined bitcoins are generated from a small 102 MW geothermal power plant located near the Tecapa volcano. 1.5 MW is used to power 300 mining installations.

Based on the use of the most popular Antminer S19 series devices in recent years, the approximate hashrate of the object is 0.042 EH/s. For comparison: the largest American public miner, Marathon Digital, had 29.9 EH/s at the end of April 2024.

In October 2023, El Salvador announced the launch of its own mining pool, Lava Pool.

El Salvador continues his Bitcoin strategy

In February 2024, the current head of state, Nayib Bukele, the main initiator of the introduction of the first cryptocurrency, won the presidential elections in the country. Before his re-election, he promised to maintain the existing Bitcoin strategy.

As the price of digital gold rose above $60,000, Bukele reported that El Salvador’s “paper” profit from investments in the asset amounted to 40% or about $41.6 million.

He clarified that the indicator is calculated only on the basis of “market purchases,” while the total volume of reserves is also formed from other sources such as mining or “Bitcoin freedom visas.” Launched at the end of 2023, the initiative allows you to get a residence permit and a chance at a local passport for an investment of $1 million through BTC or USDT.

In February 2022, the government announced the issue of the world’s first Bitcoin bonds for $1 billion. The project partner was the platform for trading tokenized securities Bitfinex Securities, and the Liquid Network sidechain was supposed to be used for placement.

The launch of the bonds was postponed several times. Officials cited, among other things, “unfavorable conditions.”

In January 2023, Parliament passed a law providing the legal basis for the issuance of digital assets, including bonds based on the first cryptocurrency. In December, El Salvador's Digital Assets Commission approved the placement of similar Volcano Bond securities worth $1 billion in the first quarter of 2024.

In April 2024, Bitfinex Securities announced the issuance of tokenized debt for the construction of a hotel complex under the Hampton brand by Hilton at El Salvador International Airport.

According to the description, the five-level infrastructure includes 80 rooms, five commercial premises, a swimming pool, restaurants, gyms and other amenities.

The placement of digital bonds on the Liquid Network started on May 15. The repayment period is 5 years, investors are promised 5% per annum.

Earlier, the government emphasized the role of Bitcoin adoption in the state’s recovery from the crisis and the growth of tourist flows into the country.

Source: Cryptocurrency

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