Bhutan and Bitdeer to Expand Bitcoin Mining Capacity Ahead of Halving Event”
Bhutan, in collaboration with Nasdaq-listed mining conglomerate Bitdeer, is gearing up to significantly increase its Bitcoin mining capacity by 500 megawatts by the year 2025. This move comes in response to concerns surrounding the impending fourth halving event, which is expected to impact the nation’s mining revenue.
Utilizing its abundant hydroelectric power resources, Bhutan plans to boost its mining capacity by 600%, implementing state-of-the-art hardware upgrades. According to reports from Bloomberg, these enhancements are projected to raise Bhutan’s mining capacity to 600 megawatts by the first half of 2025.
Matt Linghui Kong, the Chief Business Officer of Bitdeer, highlighted that the upgrades will incorporate Bitdeer’s latest hardware technology to optimize costs and enhance computing power. While the exact financial terms of the collaboration have not been disclosed, it’s known that the funding will be sourced from a $500 million fund established jointly by both parties in May 2023.
Situated between China and India, Bhutan has been actively seeking to diversify its economy, which heavily relies on hydropower. Druk Holding & Investments, Bhutan’s investment arm, views cryptocurrency mining as a crucial element in nurturing an innovation ecosystem to support a growing startup economy. This perspective aligns with the ongoing initiatives of asset tokenization and the development of “Bhutanverse,” a metaverse project undertaken in collaboration with Smobler and The Sandbox.
As Bitcoin miners globally prepare for reduced rewards due to the halving event, slated for April, DHI and Bitdeer express confidence in maintaining operational efficiency. They point to Bitdeer’s low cost per Bitcoin mined, currently estimated at $20,000 per BTC, as a key factor supporting their optimism.