The Himalayan nation of Bhutan plans to quintuple its Bitcoin mining operations ahead of the impending halving event in April.
BREAKING: đ§đč The Kingdom of Bhutan will increase its mining capacity by 6 before the #Bitcoin halve to 600 megawatts.
Nation-state FOMO sets in đ pic.twitter.com/kLsU3fGk0U
â Bitcoin Magazine (@BitcoinMagazine) April 5, 2024
According to Bloomberg, Bhutan's sovereign wealth fund Druk Holding & Investments is partnering with Bitcoin mining company Bitdeer to increase its capacity from 100 to 600 megawatts. The country is institutionally interested in Bitcoin, with its sovereign wealth fund buying BTC since prices were around $5,000.
Bhutan announced last year that it was raising $500 million to boost its mining operations. By presenting mining as both a business opportunity and a crisis mitigation tool, Bhutan has adopted Bitcoin more fully than most countries. Its renewable hydroelectric reserves also make it an ideal location for environmentally friendly mining.
The new investment in cutting-edge mining hardware comes as the Bitcoin network faces a halve by mid-April. The quadrennial event cuts overall miner rewards in half, impacting revenue.
Bhutan cited offsetting the impact of the halving by half as motivation 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 which can be as high as $45,000.
This isolated Himalayan nation also sees Bitcoin mining as a way to boost rural economies and jobs.