Bhutan is gearing up for a substantial 500% increase in Bitcoin mining operations, growing from 100 to 600 megawatts, in response to the upcoming Bitcoin halving.
Bhutan is set to expand its Bitcoin mining capacity by 500%, enhancing its operations from 100 to 600 megawatts. This decision comes in anticipation of the Bitcoin network's upcoming halving event scheduled for mid-April, which will decrease mining rewards from 6.25 to 3.125 coins per block.
According to Bloomberg, Druk Holding & Investments, Bhutan's sovereign wealth fund, in collaboration with Bitcoin mining company Bitdeer, is driving this expansion. The Himalayan nation, which has been purchasing BTC since the price was around $5,000, views Bitcoin mining as a commercial opportunity and a means of crisis mitigation. Bhutan's renewable hydropower resources position it as a uniquely advantageous location for mining operations.
The expansion, supported by a $500 million fund raised last year, is set to be completed by the first half of 2025. Matt Linghui Kong, chief business officer at Bitdeer, stated in an interview that the upgrades will incorporate the latest mining hardware, striving to maintain operational efficiency despite potential post-halving price declines.
The Bitcoin network has seen its computing difficulty reach record highs, reflecting the increased effort required to mine new blocks. Despite this, Bitdeer has reported one of the lowest costs per Bitcoin mined in the industry, at $20,000 per coin, significantly below the global average of up to $45,000.
The move also aims to bolster rural economies and create job opportunities within Bhutan. The nation's CEO of DHI, Ujjwal Deep Dahal, highlighted that the 500-megawatt boost will leverage Bitdeer's advanced hardware to reduce costs and enhance computing power.
Bitdeer, a leading Bitcoin miner by compute power and owned by Chinese entrepreneur Jihan Wu, runs one of the largest facilities in Texas. The expansion by Bhutan, located between economic giants China and India, is part of a broader strategy to diversify its economy, which has historically relied on hydropower.
Bhutan's substantial increase in Bitcoin mining capacity is a strategic response to both the upcoming halving event and the nation's broader economic diversification goals. With significant investments in cutting-edge technology and renewable energy resources, Bhutan is positioning itself as a key player in the Bitcoin mining landscape.
