Bhutan, in partnership with Bitdeer, is poised to significantly expand its Bitcoin mining capacity in response to concerns surrounding the upcoming halving event. The nation’s investment arm, Druk Holding & Investments (DHI), is collaborating with Nasdaq-listed mining conglomerate Bitdeer to enhance mining production and counteract the potential revenue impact of the fourth halving.
According to a report by Bloomberg, Bhutan is considering a substantial increase in mining capacity, aiming for a 600% expansion by leveraging state-of-the-art hardware and abundant hydroelectric power resources. Bitdeer’s chief business officer, Matt Linghui Kong, revealed in an interview with Bloomberg that these planned upgrades could augment Bhutan’s mining capacity by 500 megawatts, reaching a total of 600 megawatts by the first half of 2025.
Ujjwal Deep Dahal, CEO of DHI, highlighted that the new upgrades will utilize Bitdeer’s latest hardware to reduce costs and enhance computing power. While specific financial details are undisclosed, funding for the venture is expected to come from a $500 million fund established jointly by both parties in May 2023.
Situated between China and India, Bhutan has been striving to diversify its economy, which heavily relies on hydropower. DHI views crypto mining as a pivotal element in nurturing an innovation ecosystem for its growing startup economy. The company is also involved in ventures related to asset tokenization and the development of “Bhutanverse,” a metaverse initiative created in collaboration with Smobler and The Sandbox.
As the Bitcoin halving in April approaches, miners worldwide are preparing for reduced rewards, with mining rewards set to decrease from 6.25 to 3.125 BTC per block. Despite this, DHI and Bitdeer express confidence in maintaining operational efficiency, citing Bitdeer’s low cost per Bitcoin mined, which stands at $20,000 per BTC as of the current time.