Bhutan Boosts Bitcoin Mining with $500M Investment, Targets 600 MW by 2025
Bhutan is boosting its Bitcoin mining operations, investing $500 million with Chinese company Bitdeer. This move aligns with the country's sustainable growth strategy and gross national happiness concept, proving successful in recent years.
Originally planning to increase mining capacity to 550 MW by the third quarter of 2024, Bhutan now aims to reach 600 MW by the first half of 2025. This expansion is in response to the upcoming Bitcoin halving event, which could impact mining revenues.
Bhutan's expansion of mining facilities has made it less reliant on mining fees, currently at low levels. The country began Bitcoin mining using its hydropower between 2017 and 2019 due to economic challenges. Bhutan also curtails the operation of ASIC miners during drought periods to secure energy for its population.
In cooperation with Bitdeer, Bhutan has established a joint investment fund. Bitdeer is known for its efficiency, with a production cost of around $20,000 per Bitcoin. Bhutan's access to low-cost energy from hydropower makes it an attractive location for mining. Another Chinese company, Bit Mining Limited, is also collaborating with Bhutan, planning investments totaling $300 million.
Bhutan's expansion of Bitcoin mining, with investments from Chinese companies, is a strategic move to secure energy and revenue. Despite challenges like halving events and low mining fees, Bhutan's hydropower advantage and efficient partners make it a competitive player in the global Bitcoin mining industry.
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