Bhutan is poised to significantly increase its Bitcoin mining capacity in collaboration with Bitdeer, aiming to expand the nation’s mining operations by 500 megawatts by 2025 in anticipation of the upcoming halving event.
Druk Holding & Investments (DHI), Bhutan’s investment arm, is spearheading the effort to boost mining production, partnering with Nasdaq-listed mining conglomerate Bitdeer. The initiative aims to mitigate the potential revenue impact of the fourth halving event, which is anticipated to reduce mining rewards.
According to Bloomberg, Bhutan is contemplating a 600% increase in mining capacity by deploying state-of-the-art hardware powered by the nation’s abundant hydroelectric resources. Bitdeer’s chief business officer, Matt Linghui Kong, revealed plans to enhance Bhutan’s mining capacity by 500 megawatts, reaching a total of 600 megawatts by the first half of 2025.
Ujjwal Deep Dahal, CEO of DHI, emphasized that the upgrade will utilize Bitdeer’s latest hardware to enhance computing power while reducing costs. Although financial specifics were not disclosed, funding for the venture will reportedly be sourced from a $500 million fund established by both parties in May 2023.
Situated between China and India, Bhutan aims to diversify its economy, heavily reliant on hydropower. DHI views crypto mining as pivotal in fostering an innovation ecosystem for its growing startup economy. The country is also involved in asset tokenization and the development of “Bhutanverse,” a metaverse initiative in collaboration with Smobler and The Sandbox.
As Bitcoin miners worldwide prepare for reduced rewards due to the halving event in April, DHI and Bitdeer express confidence in maintaining operational efficiency. Bitdeer’s low cost per Bitcoin mined, currently at $20,000 per BTC, contributes to their optimism amidst the impending changes in mining rewards.
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