Bhutan to increase Bitcoin mining operations sixfold ahead of halving
Bhutan and Bitdeer are set to expand Bitcoin mining capacity amid halving concerns, aiming to expand the nation’s mining capacity by 500 megawatts by 2025.
Bhutan‘s investment arm, Druk Holding & Investments (DHI), is gearing up to boost its mining production in collaboration with Nasdaq-listed mining conglomerate Bitdeer to mitigate the anticipated revenue impact of the upcoming fourth halving event.
According to a Bloomberg report, Bhutan is weighing on increasing its mining capacity by 600% by introducing state-of-the-art hardware, utilizing the nation’s abundant hydroelectric power resources. In an interview with Bloomberg, Bitdeer chief business officer Matt Linghui Kong said that the planned upgrades are expected to boost Bhutan’s mining capacity by 500 megawatts, reaching a total of 600 megawatts by the first half of 2025.
Ujjwal Deep Dahal, chief executive officer at DHI, says the new upgrade “will be built on Bitdeer’s latest hardware to lower costs and improve computing power.” Although specific financial details of the venture remain undisclosed, it’s understood that the funding will be drawn from a $500 million fund established by both parties in May 2023.
Located between China and India, Bhutan has long sought to diversify its economy, heavily reliant on hydropower. Druk Holding & Investments considers crypto mining as pivotal in fostering an innovation ecosystem for a burgeoning startup economy, with ongoing ventures in asset tokenization and the development of “Bhutanverse,” a metaverse initiative made in collaboration with Smobler and The Sandbox.
Bitcoin miners worldwide are bracing for reduced rewards as the impending halving in April will cut mining rewards by half: from 6.25 to 3.125 BTC per block. However, DHI and Bitdeer remain confident in maintaining operational efficiency, citing Bitdeer’s low cost per Bitcoin mined at $20,000 per BTC as of press time.
