Bhutan’s investment arm, Druk Holding & Investments, and Bitdeer Technologies Group are planning to ramp up their Bitcoin mining operation to offset the revenue impact of an upcoming event known as the halving. The partnership aims to boost Bhutan’s mining capacity sixfold through the introduction of cutting-edge hardware. The planned upgrades will increase Bhutan’s mining capacity by 500 megawatts by the first half of 2025. This would bring Bhutan’s total capacity to 600 megawatts.
The capital for this upgrade will be drawn from a $500 million fund that the pair began raising in May last year, when they unveiled plans to leverage Bhutan’s abundant hydroelectric power for Bitcoin mining. The fund is expected to close by July.
Bitcoin miners operate power-hungry computers that secure the blockchain, earning new tokens as a reward. These rewards are programmed to be cut in half every four years, part of the process of capping the total supply of the original cryptocurrency at 21 million coins. The upcoming halving in April will see mining rewards slashed from 6.25 to 3.125 coins per block.
Despite the upcoming halving, DHI and Bitdeer are confident they can maintain operational efficiency even if the price of Bitcoin declines post-halving. Bitdeer has one of the lowest costs per Bitcoin mined in the industry at $20,000 per coin.
read more > www.bloomberg.com