Bhutan, known for its focus on sustainable development, is gearing up to significantly expand its Bitcoin mining capacity in collaboration with Bitdeer, a Nasdaq-listed mining conglomerate. This strategic move comes as the cryptocurrency market braces for the impacts of the anticipated fourth halving event.
The investment arm of Bhutan, Druk Holding & Investments (DHI), is leading the charge to bolster mining production in the region. Partnering with Bitdeer, they aim to utilize the nation’s abundant hydroelectric power resources to increase mining capacity by a staggering 600%, equivalent to 500 megawatts, by 2025.
Bitdeer’s chief business officer, Matt Linghui Kong, highlighted the planned upgrades, emphasizing the adoption of state-of-the-art hardware to enhance efficiency and computing power. The ambitious endeavor is projected to elevate Bhutan’s mining capacity to 600 megawatts within the first half of 2025.
Ujjwal Deep Dahal, CEO of DHI, underscored the significance of the upgrade, noting the adoption of Bitdeer’s latest hardware to optimize costs and performance. While financial specifics of the venture remain undisclosed, it is known that funding will be sourced from a jointly established $500 million fund initiated in May 2023.
Situated between China and India, Bhutan has been keen on diversifying its economy, traditionally reliant on hydropower. DHI views crypto mining as a pivotal step towards fostering an innovation ecosystem, aligning with ongoing initiatives such as asset tokenization and the development of “Bhutanverse,” a metaverse project in collaboration with Smobler and The Sandbox.
The looming halving event in April, which will halve mining rewards from 6.25 to 3.125 BTC per block, has prompted global miners to reassess their strategies. However, DHI and Bitdeer remain optimistic about maintaining operational efficiency, citing Bitdeer’s low cost per Bitcoin mined, currently at $20,000 per BTC.
