Bhutan, a Himalayan country in South Asia, plans to increase its Bitcoin mining five-fold before the impending April halving.
BREAKING: 🇧🇹 Kingdom of Bhutan to increase mining capacity 6x ahead of the #Bitcoin Reduced to 600 megawatts.
The nation state FOMO has set in🙌 pic.twitter.com/kLsU3fGk0U
— Bitcoin Magazine (@BitcoinMagazine) April 5, 2024
As per Bloomberg, Bhutan’s sovereign wealth fund Druk Holding & Investments is partnering with Bitcoin mining firm Bitdeer to ramp up capacity from 100 to 600 megawatts. Since the prices of BTC were about $5,000, Bhutan’s sovereign wealth fund has been investing in Bitcoin.
Bhutan revealed last year that it would raise $500 million for mining operations. Bhutan embraced Bitcoin to a greater extent than other nations by framing the mining industry as a business opportunity, and viewed it also as able to mitigate crises. Bhutan’s renewable hydropower makes it an excellent location for eco friendly mining.
Bitcoin is facing a number of challenges, including a lack of liquidity and a decrease in the value. halving in mid-April. The event quadrennially reduces the block reward for miners by a half and impacts revenue.
Bhutan’s mining expansion was motivated by the need to offset the impact of a halving. Bitdeer is one of the companies that mine Bitcoins at the lowest cost in the business, with a price of $20,000 for each coin. This is far lower than the global average up to $45,000.
Bitcoin mining is also seen as a means to improve rural economies and create jobs in the remote Himalayan country.Â
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Source: bitcoinmagazine.com
