Bhutan Boosts Bitcoin Mining with $500M Joint Fund, Targets 600 MW Capacity
Bhutan, the small Himalayan nation, is making waves in the Bitcoin mining scene. It has partnered with Bitdeer to establish a joint investment fund, aiming to boost their Bitcoin mining efforts.
The Kingdom of Bhutan, in collaboration with Bitdeer, plans to invest a substantial 500 million USD into Bitcoin mining. This joint venture, launched in May 2023, will see Druk Holding & Investments (DHI), Bhutan's investment arm, work alongside Bitdeer to expand mining capacity up to 600 MW.
Bhutan is no stranger to Bitcoin mining. Between 2017 and 2019, it operated mining facilities using its abundant hydroelectric power to navigate economic challenges. Now, Bhutan is set to increase its mining capacity significantly, from 100 MW to a whopping 600 MW by mid-2025. Initially, the plan was to reach 550 MW by the third quarter of 2024, but the target has been revised.
Bhutan's commitment to Bitcoin mining is notable, especially considering its energy management strategies. During drought periods, it restricts ASIC miner operation to prioritize energy for the population. Despite this, Bhutan's Bitcoin production cost per Bitcoin stands at around 20,000 USD, significantly lower than the global average of approximately 45,000 USD.
Bhutan's ambitious Bitcoin mining growth targets align with its sustainable growth strategy and the concept of Gross National Happiness. Like the broader mining industry, Bhutan aims to expand its capacities ahead of the next Bitcoin halving.
Bhutan's partnership with Bitdeer and its ambitious Bitcoin mining plans signal a significant shift in the global mining landscape. By leveraging its hydroelectric power and strategic planning, Bhutan is positioning itself as a major player in the Bitcoin mining scene, all while keeping its unique sustainable growth strategy in mind.
