Bhutan Set to Expand Bitcoin Mining Operations Six Times in Anticipation of Halving
Bhutan and Bitdeer have announced plans to expand Bitcoin mining capacity in order to address concerns about the upcoming halving event. The goal is to increase the nation’s mining capacity by 500 megawatts by 2025.
Druk Holding & Investments (DHI), Bhutan’s investment arm, will collaborate with Bitdeer, a Nasdaq-listed mining conglomerate, to boost mining production and mitigate the expected impact on revenue from the halving. Bhutan plans to increase its mining capacity by 600% by introducing advanced hardware and utilizing its abundant hydroelectric power resources.
Matt Linghui Kong, the chief business officer of Bitdeer, stated in an interview with Bloomberg that these upgrades are expected to increase Bhutan’s mining capacity by 500 megawatts, reaching a total of 600 megawatts by the first half of 2025. Ujjwal Deep Dahal, the CEO of DHI, mentioned that the new upgrade will utilize Bitdeer’s latest hardware to reduce costs and improve computing power.
The financial details of the venture have not been disclosed, but it is known that the funding will come from a $500 million fund established by both parties in May 2023.
Bhutan, located between China and India, has been keen to diversify its economy, which is heavily reliant on hydropower. DHI sees crypto mining as a crucial element in fostering an innovation ecosystem for a growing startup economy. They are also involved in asset tokenization and the development of “Bhutanverse,” a metaverse initiative created in collaboration with Smobler and The Sandbox.
Bitcoin miners worldwide are preparing for reduced rewards due to the halving event in April, which will cut mining rewards in half. However, DHI and Bitdeer are confident in maintaining operational efficiency, citing Bitdeer’s low cost per Bitcoin mined at $20,000 per BTC as of press time.
