Key Points
- Bhutan and Bitdeer aim to increase Bitcoin mining capacity, despite halving concerns.
- The plan includes using advanced hardware and Bhutan’s abundant hydroelectric power resources.
Bhutan, in partnership with Bitdeer, is looking to grow its Bitcoin mining capacity.
This is in response to potential revenue impacts from the upcoming fourth halving event.
Boosting Mining Capacity
Druk Holding & Investments (DHI), Bhutan’s investment arm, is preparing to intensify its mining production together with Bitdeer, a mining conglomerate listed on Nasdaq.
A report from Bloomberg suggests that Bhutan is considering a 600% increase in its mining capacity by incorporating cutting-edge hardware and capitalizing on the country’s plentiful hydroelectric power resources.
Matt Linghui Kong, Bitdeer’s chief business officer, shared with Bloomberg that the planned upgrades should elevate Bhutan’s mining capacity by 500 megawatts.
This would result in a total of 600 megawatts by the first half of 2025.
DHI’s CEO, Ujjwal Deep Dahal, stated that the new upgrade will be based on Bitdeer’s latest hardware to decrease costs and enhance computing power.
Even though the financial specifics of the project are not disclosed, it is believed that the funding will come from a $500 million fund established by both parties in May 2023.
Embracing Crypto Mining
Bhutan, nestled between China and India, has been striving to diversify its economy, which is heavily dependent on hydropower.
DHI views crypto mining as crucial to fostering an innovation ecosystem for a growing startup economy.
This includes ongoing projects in asset tokenization and the development of “Bhutanverse”, a metaverse initiative in partnership with Smobler and The Sandbox.
Bitcoin miners globally are preparing for reduced rewards due to the impending halving in April, which will halve mining rewards from 6.25 to 3.125 BTC per block.
Despite this, DHI and Bitdeer remain optimistic about maintaining operational efficiency, citing Bitdeer’s low cost per Bitcoin mined at $20,000 per BTC at the time of the report.
