Thomas Daniels
In a strategic maneuver poised to redefine the cryptocurrency mining landscape, the Kingdom of Bhutan, in collaboration with the Nasdaq-listed mining titan Bitdeer, has announced plans to significantly bolster its Bitcoin mining operations. Amidst the looming anticipation of Bitcoin’s fourth halving event, this partnership aims to amplify Bhutan’s mining capacity to an astonishing 500 megawatts by 2025, marking a 600% increase.
Druk Holding & Investments (DHI), Bhutan’s sovereign investment arm, is at the forefront of this ambitious initiative. By harnessing Bitdeer’s cutting-edge mining technology and Bhutan’s vast hydroelectric power resources, DHI is set to navigate the potential revenue fluctuations anticipated from the halving event. This expansion is not just a venture into enhancing computational power but a step towards solidifying Bhutan’s position as a frontrunner in the innovative ecosystem of cryptocurrency mining.
Matt Linghui Kong, Bitdeer’s Chief Business Officer, revealed in a Bloomberg interview the project’s goal to elevate Bhutan’s mining capabilities to a total of 600 megawatts by the first half of 2025. This leap forward is underpinned by the deployment of the latest mining hardware, optimizing both cost efficiency and computing power.
The financing of this substantial upgrade, though not publicly disclosed in its entirety, is understood to be supported by a $500 million fund jointly established by DHI and Bitdeer in May 2023. This financial infusion underscores the collaborative commitment to advancing Bhutan’s mining infrastructure, leveraging the country’s renewable energy assets.
Situated between the economic powerhouses of China and India, Bhutan has long pursued economic diversification, with a particular emphasis on hydropower. The venture into cryptocurrency mining, spearheaded by Druk Holding & Investments, is viewed as a cornerstone for cultivating an innovation-driven economy. This includes ventures in asset tokenization and the creation of “Bhutanverse,” a pioneering metaverse project in partnership with Smobler Studios and The Sandbox, aimed at fostering a dynamic startup ecosystem.
As the Bitcoin community anticipates the halving event slated for April, which will see mining rewards halve from 6.25 to 3.125 BTC per block, Bhutan and Bitdeer stand resilient. Their strategy is underpinned by Bitdeer’s competitive advantage of a low mining cost per Bitcoin, currently estimated at $20,000 per BTC, positioning them to navigate the challenges of reduced mining rewards with operational efficiency.
