Expansion of Bitcoin mining in Bhutan
Bhutan plans to expand its Bitcoin mining operations from 100 to 600 megawatts in collaboration with mining company Bitdeer. This significant expansion comes ahead of the Bitcoin halving event scheduled for mid-April and is seen as a strategic move to compensate for the expected loss of revenue. The upcoming halving will see the rewards for creating new Bitcoin blocks halved, which traditionally has an impact on the profitability of mining.
Bhutan's sovereign wealth fund invests in Bitcoin
Bhutan's sovereign wealth fund, Druk Holding & Investments, made a far-sighted investment by purchasing Bitcoin when the price was still around $5,000. To further strengthen the country's mining operations, the fund has committed to investing $500 million. The goal of this investment is to improve infrastructure and take full advantage of the opportunities offered by Bitcoin and blockchain technology.
Environmentally friendly mining thanks to hydropower
Bhutan is in a unique position to conduct green and environmentally friendly Bitcoin mining due to its rich hydropower resources. These benefits not only benefit the environment, but also help strengthen the local economy and create jobs.
Cost efficiency at Bitdeer
Bitdeer, the mining company that works with Bhutan, features a cost-effective mining strategy, with the cost of mining one Bitcoin being just $20,000. This number is significantly lower than the global average price, giving Bhutan and Bitdeer a competitive advantage internationally.
Growing government interest in Bitcoin
Bhutan's push reflects a growing trend in which nation states are increasingly interested in Bitcoin, whether as an economic opportunity or as a hedge against financial uncertainty. This potentially signals a shift towards wider acceptance of cryptocurrencies at the state level.