The Himalayan nation of Bhutan plans to expand its Bitcoin mining operations fivefold ahead of the impending halving event in April.
BREAKING: 🇧🇹 Kingdom of Bhutan to increase mining capacity 6x ahead of the #Bitcoin halving to 600 megawatts.
Nation state FOMO is setting in 🙌 pic.twitter.com/kLsU3fGk0U
— Bitcoin Magazine (@BitcoinMagazine) April 5, 2024
According to Bloomberg, Bhutan’s sovereign wealth fund Druk Holding & Investments is partnering with Bitcoin mining firm Bitdeer to ramp up capacity from 100 to 600 megawatts. The country has taken an institutional interest in Bitcoin, with its sovereign fund purchasing BTC since prices were around $5,000.
Bhutan announced last year it was raising $500 million to boost mining operations. By framing mining as both a commercial opportunity and crisis mitigation tool, Bhutan has embraced Bitcoin more fully than most nations. Its renewable hydropower reserves also make it an ideal location for eco-friendly mining.
The new investment in cutting-edge mining hardware comes as the Bitcoin network faces a halving in mid-April. The quadrennial event cuts block rewards for miners in half, impacting revenue.
Bhutan cited offsetting the halving’s impact as a motivation for expanding its mining operations. Bitdeer has one of the lowest costs per Bitcoin mined in the industry at $20,000 per coin, far below the global average of up to $45,000.
The remote Himalayan nation has also viewed Bitcoin mining as a way to boost rural economies and jobs.