Bhutan Boosts Bitcoin Mining Ahead of Halving, Targets 600 MW Capacity
Bhutan is ramping up its Bitcoin mining operations in a strategic move to mitigate the impact of the upcoming Bitcoin halving. The kingdom, known for its commitment to sustainable development and gross national happiness, is investing heavily in this cryptocurrency venture.
In a significant development, Bhutan has teamed up with Chinese mining giant Bitdeer to boost its mining capabilities. The joint investment fund, established on May 3, 2023, involves a 500 million USD investment from Bhutan, leveraging its low-cost hydropower energy. Bitdeer, renowned for its efficiency, has a production cost of around 20,000 USD per Bitcoin.
Initially started between 2017 and 2019 due to economic challenges, Bhutan's mining operations have since expanded. The kingdom is now targeting a capacity increase from 100 MW to 600 MW by the first half of 2025. This expansion aligns with the broader Bitcoin mining industry's preparations for the halving, which is expected to reduce mining revenues.
Bhutan's mining growth strategy also involves collaboration with Mawingu Networks. Despite occasional droughts that necessitate energy restrictions, Bhutan is becoming less reliant on Bitcoin price volatility and mining fees. This is attributed to upgrades to more efficient hardware and the expansion of mining facilities.
Bhutan's aggressive expansion of Bitcoin mining, despite the upcoming halving, signals a long-term commitment to cryptocurrency as a sustainable growth strategy. By harnessing its abundant, low-cost hydropower and partnering with efficient mining companies, Bhutan is positioning itself to weather the storm of the Bitcoin halving and continue its pursuit of gross national happiness.
