El Salvador has significantly expanded its bitcoin holdings over the past three years. According to official data released on Tuesday, the country has mined nearly 474 bitcoins since 2021 using geothermal energy from the Tecapa volcano. This brings the government’s total bitcoin portfolio to an estimated $354 million at current prices, as reported by Reuters.
The “Bitcoin Office,” an official government entity that handles all matters crypto related in the country, confirmed that El Salvador now possesses 5,750 bitcoins. Since September 2021, the country has mined 473.5 bitcoins, valued at approximately $29 million, through geothermal energy from the Tecapa volcano. This method is considered environmentally friendly, leveraging renewable energy for cryptocurrency mining, which is not regulated by any central bank.
‘Bitcoin President’ Nayib Bukele, is the one who started the initiative of mining. Under his administration, 300 processors have been installed to mine bitcoins using energy from the volcano. Of the 102 megawatts (MW) generated by the state-owned power plant, 1.5 MW are allocated for cryptocurrency mining. This process requires substantial energy for computing and cooling data centers that perform complex mathematical equations to secure cryptocurrencies like bitcoin.
El Salvador made headlines on September 7, 2021, by becoming the first country to adopt bitcoin as legal tender, alongside the U.S. dollar, which has been in use for two decades. This move sparked significant controversy and criticism from various quarters, including the International Monetary Fund (IMF), due to the inherent volatility of bitcoin. El Salvador opposed their views and made it clear that bitcoin is about sovereignty.