The Himalayan nation of Bhutan plans to expand its Bitcoin mining operations fivefold ahead of the impending halving event in April.
Urgent: 🇧🇹 The Kingdom of Bhutan intends to increase mining capacity 6 times ahead of schedule #Bitcoin Halved to 600 megawatts.
Nation state FOMO is set up in 🙌 pic.twitter.com/kLsU3fGk0U
– Bitcoin Magazine (@BitcoinMagazine) April 5, 2024
According to Bloomberg, Bhutan's sovereign wealth fund Druk Holding & Investments is teaming up with Bitcoin mining company Bitdeer to increase capacity from 100 to 600 megawatts. The country has shown institutional interest in Bitcoin, with its sovereign fund buying Bitcoin since prices were around $5,000.
Bhutan announced last year that it had raised $500 million to boost mining operations. By framing mining as a business opportunity and crisis relief tool, Bhutan has embraced Bitcoin more fully than most countries. Its reserves of renewable hydroelectric power also make it an ideal location for environmentally friendly mining.
The new investment in advanced mining hardware comes as the Bitcoin network faces a halving in mid-April. This event, which takes place every four years, halves miners' rewards, impacting revenues.
Bhutan cited the halving impact offset as an incentive to expand its mining operations. Bitdeer has one of the lowest costs per Bitcoin mined in the industry at $20,000 per coin, well below the global average of $45,000.
The remote Himalayan nation has also looked to Bitcoin mining as a way to boost rural economies and jobs.
