El Salvador’s Bukele hints at “rent your own volcano” Bitcoin mining program

Guest author: Elizabeth Bratton, Reporter, Latin America Reports

El Salvador’s President Nayib Bukele has hinted at a “rent your own volcano” program as a way of harnessing geothermal energy to power Bitcoin mining. 

The revelation came after an X user shared that El Salvador has thus far mined 474 Bitcoin, worth about $46 million, with the assistance of volcanic geothermal power. Bukele responded to the post, saying: “And with 170 volcanoes … A ‘rent your own volcano to mine Bitcoin’ program might actually make sense.” 

Data published by Spotonchain shows that the Salvadoran government currently holds over 5,900 Bitcoin, which is worth about $581.399 million at the time of writing. On November 1, this figure was about $410 million. 

In 2021, El Salvador became the first country to accept Bitcoin as legal tender. Bitcoin ATMs emerged across the country, and the government announced plans to construct a “Bitcoin City.” The city was to be built at the base of the Conchagua volcano in the south-eastern region of La Unión, which Bukele said would include “Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything devoted to Bitcoin.” However, the project has faced several delays. 

Bitcoin has also faced limited popularity in the country, where 26.6% of the population was living below the national poverty line in 2022. In 2023, a survey by El Salvador’s Central American University revealed that 71.1% of Salvadorans felt that Bitcoin had done “nothing” to improve families’ financial situations, while a survey published in October 2024 by the San Salvador-based Francisco Gavidia University found that 92% of Salvadorans do not make transactions with Bitcoin. 

While some view geothermal energy as a sustainable option for Bitcoin mining, others are more skeptical. 

Álvaro Trigueros, director of the Department of Economic Studies of the Salvadoran Foundation for Economic and Social Development (FUSADES), told Deutsche Welle in 2021: “According to the installed energy capacity in El Salvador, national electricity production is in deficit. 19.9 percent of the energy consumed has to be imported.” He added: “Since the country is not self-sufficient, if Bitcoin were mined in El Salvador, it would cause an excessive increase in electricity demand and the country would be forced to import more.” 

That same year, Ricardo Navarro, the head of environmental NGO Salvadoran Center for Appropriate Technology (CESTA) told POLITICO: “I am under the impression that Bukele doesn’t really understand what is going on in the energy situation,” explaining that it was unlikely that Bitcoin miners would be able to fulfill their electricity requirements by depending on volcanoes alone. He added that geothermal Bitcoin mining would “certainly” complicate demand. 

However, Erick Chacon, the president of the Salvadoran Financial Technology Association (ASAFINTECH) told Latin America Reports that the prospect of a “rent your own volcano” scheme “demonstrates a creative and disruptive vision that has characterised El Salvador as a global leader in the adoption of emerging technologies.” Chacon explained that, while such ideas “may initially seem unusual,” they “generate conversation, attract international attention, and position the country as an attractive space for technological investment.” 

Chacon added that, before this idea can be realised, “technical, economic, and environmental feasibility studies must be conducted” in order to ensure that the country’s resources are used “efficiently, sustainably, and in line with national and international regulations.”

ASAFINTECH, according to Chacon, is “convinced that debate and constructive analysis are essential for El Salvador to continue leading the region in financial technology and Bitcoin adoption.” 

Alastair Caithness, a Bitcoin Mining Consultant and host of the Boom! It’s on the Blockchain podcast, explained to Latin America Reports that El Salvador’s use of geothermal energy to mine Bitcoin offers “both advantages and disadvantages.” Caithness stated that “geothermal energy is considered sustainable, reliable, and environmentally friendly, producing minimal greenhouse gas emissions,” adding: “Unlike wind or solar, geothermal energy is available around the clock, unaffected by weather and climatic changes.” 

However, Caithness noted: “The use of geothermal energy for Bitcoin mining is geographically limited to regions with accessible geothermal heat, such as volcanic areas or tectonic plate boundaries,” which “restricts its widespread use.” Additionally, he said that the transportation of geothermal energy to remote mining sites can be costly, “limiting large-scale adoption in areas without geothermal resources.” 

In spite of these challenges, Caithness believes “the growing demand for energy in crypto mining, data centers, and AI presents a significant opportunity for El Salvador’s geothermal energy,” positioning the country “as a key player in the future of Bitcoin mining and the broader crypto energy landscape.” 

Farbod Esmaeilion, a senior researcher at the K. N. Toosi University of Technology in Iran and co-author of a feasibility study on the production of Bitcoin with geothermal energy, told Latin America Reports that geothermal energy is the “most sustainable” way of mining Bitcoin. 

However, he noted that there must be “environmental considerations” before such schemes are undertaken. Among these considerations, according to Esmaeilion, is the possibility of water pollution, which can occur during the construction of geothermal wells. He said that there is a risk that “materials and detrite” enter nearby water sources, including drinking water, which governments must manage before commencing large-scale geothermal Bitcoin mining projects. 

Another challenge posed by geothermal Bitcoin mining is that of identifying sites where geothermal plants can be constructed. Esmaeilion explained that governments must find the “best and most optimal locations” for these undertakings, making sure that any potential sites are at the necessary temperature for Bitcoin mining. He added: “Half of this story is beneath the ground.” 

Esmaeilion also said that governments must make “economic considerations,” given that a “high amount of investments” are needed before projects such as Bukele’s “rent your own volcano” scheme can become viable, particularly given that geothermal energy is “much more expensive” than wind or solar alternatives. 

Although Bukele has repeatedly emphasized his commitment to cryptocurrencies, it remains to be seen exactly how much more money his government is willing and able to invest in geothermal Bitcoin mining. However, this could change if the value of the country’s crypto investments continues to rise as it has done over recent months.