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El Salvador’s Bitcoin City Construction Update: New Milestones and Challenges

As of May 2025, El Salvador’s Bitcoin City project is making progress, though not without hurdles. The ambitious development—envisioned as a tax-free hub for crypto innovation—has seen significant investments and early construction milestones.

One major step is the Airport of the Pacific, designed to serve Bitcoin City. Construction began in February 2025 and is planned in three phases, with the first phase expected to be operational by 2027 (Wikipedia).

A $1.6 billion investment was secured in August 2024, in partnership with Turkish company Yilport Holdings, aiming to transform the nearby ports of Acajutla and La Unión into major economic centers (CoinTribune).

Bitcoin City will be powered by geothermal energy from the Conchagua volcano, showcasing El Salvador’s commitment to sustainable energy solutions for the crypto-driven project (Loop Design Awards).

However, the project has sparked environmental and social concerns. Reports reveal the airport construction has led to the displacement of around 225 households and the destruction of mangrove forests, raising alarms over ecological and community impacts (The Guardian).

El Salvador’s Bitcoin City symbolizes a bold attempt to merge cryptocurrency with national economic growth—but highlights the challenges of balancing innovation with environmental protection and social equity.

Energy Efficiency Becomes Survival Question for Bitcoin Miners

The Bitcoin halving in April 2024 has led to a dramatic shift in the mining landscape. With mining rewards halved from 6.25 BTC to 3.125 BTC per block, profitability took a significant hit. The “hashprice”—a measure of mining revenue per terahash—fell sharply from $0.12 in April 2024 to $0.049 in April 2025, according to Cointelegraph.

Meanwhile, the network difficulty surged to an all-time high of 123T. This record-setting level means miners must compete even harder to validate new blocks, pushing up operational costs. As a result, many mining companies are making strategic upgrades to their infrastructure. They're investing in next-generation, energy-efficient mining rigs and optimizing cooling systems and power management to reduce electricity use.

The shift is also driven by growing environmental concerns and regulatory pressures. Mining companies are increasingly aware that cutting energy waste is not just about profitability—it’s also crucial for long-term sustainability and public perception.

These developments underscore a new reality: energy efficiency is no longer optional. For miners to survive in this post-halving environment, they must adapt or risk being left behind.

Global Initiatives Driving Sustainable Bitcoin Mining

In 2025, innovative projects worldwide are connecting Bitcoin mining with climate action, leveraging surplus energy and renewable resources to reduce the industry’s carbon footprint.

In Pakistan, the government has allocated 2,000 megawatts of surplus electricity to support Bitcoin mining and AI data centers. The move is designed to make use of otherwise wasted energy and draw foreign investment into the country (Reuters).

Meanwhile, Argo Blockchain, a UK-based company, is setting an example for sustainable mining with facilities in Canada and the United States powered primarily by hydroelectric energy, significantly cutting down emissions from traditional mining operations (Blockchain Magazine).

In Texas, Marathon Digital Holdings has acquired a wind farm to mine Bitcoin with near-zero carbon emissions during peak wind periods. This showcases a model for eco-friendly mining, using renewable power to ensure that Bitcoin’s energy-intensive processes align more closely with global climate goals (Financial Times).

These examples highlight how Bitcoin mining is evolving to support renewable energy initiatives and contribute to climate solutions.