Bhutan prepares for the fourth Bitcoin halving – plans to increase cryptocurrency mining
Bhutan and Bitdeer Prepare for the Fourth Bitcoin Halving – Plans for Cryptocurrency Mining
Bhutan, a picturesque country in South Asia, together with the investment firm Druk Holding & Investments (DHI) and the publicly traded mining corporation Bitdeer, are intensifying their efforts to increase Bitcoin mining capabilities in anticipation of the upcoming fourth halving. The goal is to ramp up production by an impressive 600%, leveraging the latest equipment and the abundance of the country’s hydroelectric resources.
Planned Increase in Mining Capacity
According to the announcements, Bhutan aims to increase its mining capacity by 500 megawatts by the first half of 2025, representing a remarkable 600% growth. The new upgrade will be based on Bitdeer equipment, with the aim of reducing costs and enhancing computational power.
Investment and Project Financing
While the financial details of the project remain confidential, it is known that the planned funding of $500 million will be sourced from a fund established by DHI and Bitdeer in May 2023. This investment is intended to minimize the potential financial impacts of the fourth halving, which will halve the mining rewards.
Economic Development of Bhutan
Bhutan has long been striving to diversify its economy, heavily reliant on hydroelectric power. Druk Holding & Investments sees cryptocurrency mining as an opportunity to promote an innovation ecosystem in the country, supporting projects related to asset tokenization and the “Bhutanverse” initiative – a metaverse cooperation with companies Smobler and The Sandbox.
Preparation for the Fourth Halving
The upcoming halving, set to take place in April, will reduce Bitcoin mining rewards from 6.25 to 3.125 BTC per block. Despite the expected changes, DHI and Bitdeer remain optimistic about maintaining operational efficiency, citing a low Bitcoin mining cost of $20,000 per BTC.
The increase in Bitcoin mining capabilities in Bhutan marks a significant step in the global competition for cryptocurrencies and in the economic development of this picturesque country, known for its environmental care and sustainable growth.
