Bhutan to Triple Its Bitcoin Mining Capacity Amid Upcoming Halving

April 5, 2024

Bhutan, in collaboration with Nasdaq-listed mining conglomerate Bitdeer, is set to expand its Bitcoin mining capacity by 500 megawatts in 2025. This move aims to mitigate the anticipated revenue impact of the upcoming fourth halving event.

The Himalayan kingdom, through its investment arm Druk Holding & Investments (DHI), is gearing up to boost its mining production by introducing state-of-the-art hardware and utilizing the nation’s abundant hydroelectric power resources.

Bitdeer’s chief business officer, Matt Linghui Kong, revealed 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. The new upgrade will be built on Bitdeer’s latest hardware to lower costs and improve computing power.

Bhutan’s decision to officially enter the Bitcoin mining space in 2023 was driven by the need to diversify its economy, which is heavily reliant on hydropower. DHI 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 virtual tapestry of Bhutan’s rich history and culture where people can interact, explore quests and games, and join various activities.

The impending halving in April will cut mining rewards by half, from 6.25 to 3.125 BTC per block. Nonetheless, DHI and Bitdeer are optimistic about the cost-effectiveness of operations, recognizing the role that Bitdeer’s low cost per Bitcoin mined plays, which is $20,000 per BTC at the time of writing.

Bhutan’s move to triple its Bitcoin mining capacity is a strategic decision to secure its revenue streams amid the halving event. As the demand for Bitcoin continues to grow, the landlocked kingdom’s increased mining capacity will support it in capitalizing on the cryptocurrency’s scarcity and potentially increase its value.

Read More

Leave a Reply

Your email address will not be published.