Geothermal Energy Boosts Bitcoin Mining in El Salvador and Iceland
El Salvador and Iceland are leading the way in geothermal-powered Bitcoin mining, leveraging volcanic energy for continuous operations. This approach offers significant cost savings and environmental benefits compared to traditional fossil fuels.
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El Salvador has established a geothermally powered Bitcoin mining pool in collaboration with Volcano Energy and Luxor Technology. As of early 2025, Bitcoin mining's electricity consumption reached approximately 138 terawatt-hours annually, comparable to the national usage of Argentina and Norway.
Geothermal energy's reliability, with capacity factors above 90%, positions it as a superior option over solar and wind, which average only 25% and 35% respectively. The cost of geothermal energy ranges between $0.02 and $0.04 per kilowatt-hour, significantly lower than average U.S. industrial rates above $0.07.
Notably, a 50 megawatt geothermal well can power around 14,000 Antminer S21 machines, generating an annual EBITDA of $52 million. As of 2024, geothermal energy accounted for 1.3% of the global Bitcoin hashrate, primarily from Iceland and El Salvador. The transition to geothermal mining could markedly reduce carbon emissions, addressing environmental concerns associated with Bitcoin mining.
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