Druk Holding & Investments and Bitdeer are boosting Bhutan’s Bitcoin mining capacity significantly, increasing it to 600 megawatts by 2025. The partnership focuses on advanced hardware to enhance efficiency despite Bitcoin’s upcoming halving, which will reduce mining rewards. Bhutan seeks to diversify its economy while investing in blockchain technology and innovative projects.
In a groundbreaking partnership, Druk Holding & Investments (DHI) and Nasdaq-listed Bitdeer are poised to revolutionize Bitcoin mining in the serene landscapes of Bhutan. This ambitious venture aims to amplify the country’s mining capacity by sixfold, introducing state-of-the-art hardware that will boost output by 500 megawatts by mid-2025, bringing total capacity to an impressive 600 megawatts, according to Bitdeer’s Chief Business Officer, Matt Linghui Kong.
Bitcoin mining, though resource-intensive, plays a crucial role in maintaining the blockchain. Miners operate powerful computers to validate transactions, receiving new tokens as rewards. Notably, these rewards undergo a significant reduction every four years, effectively controlling the total cryptocurrency supply, currently capped at 21 million coins. With April’s upcoming halving, the reward will drop from 6.25 to 3.125 coins per block—a crucial transition for the crypto landscape.
Despite challenges, including a 2022 crypto downturn where many miners faced bankruptcy due to soaring energy costs and tumbling Bitcoin prices, DHI and Bitdeer remain optimistic. Kong noted Bitdeer maintains a low cost of production at $20,000 per mined Bitcoin, allowing them to sustain operational efficiency post-halving even with potential price drops.
The past year has witnessed an explosive 140% rally in Bitcoin prices, rejuvenating survival-focused firms. As digital currency trades at $68,581, the rising difficulty of mining—which gauges the required computational power for network block additions—has reached record levels, complicating the mining landscape further.
In the words of Ujjwal Deep Dahal, CEO of DHI, the 500-megawatt expansion will leverage Bitdeer’s latest hardware, enhancing computing power and lowering costs. Situated strategically between China and India, Bhutan is eager to diversify away from its hydropower dependency, with blockchain technology seen as pivotal for fostering an innovative startup ecosystem. DHI is also exploring initiatives like asset tokenization and the creation of “Bhutanverse,” a metaverse project intended to anchor Bhutan’s digital future.
This alliance between Druk Holding & Investments and Bitdeer marks a significant milestone in Bhutan’s embrace of cryptocurrency. With the planned capacity increase and the strategic timing around Bitcoin’s halving, Bhutan is setting itself up for a more robust presence in the global bitcoin mining arena, while also tackling challenges like increasing mining difficulty and operational costs. As the digital landscape continues to evolve, Bhutan is not just adapting but aiming to thrive within it.
Original Source: m.economictimes.com
