May 19, 2024
Bitcoin News

Bhutan Boosts Bitcoin Mining Capacity Ahead of Halving

In a strategic step to mitigate the potential impact of Bitcoin’s halving on mining payouts, the Kingdom of Bhutan’s sovereign investment arm, Druk Holding and Investments (DHI), has partnered with Bitdeer Technologies to dramatically boost their BTC mining capacity.

Expanding Mining Operations

DHI and Bitdeer Technologies have revealed plans to increase the capacity of their mining project by sixfold before the halving.

Chart depicting Bitcoin mining profitability in Q1 2024. Source: BitInfoCharts

This plan includes investing in mining infrastructure to boost Bhutan’s mining capacity by 500 megawatts, bringing the total to 600 megawatts by the first half of 2025.

Utilizing Renewable Energy

Bitdeer’s chairman, Jihan Wu, highlighted the utilization of Bhutan’s zero-emission energy to support blockchain technologies.

The collaboration aims to leverage the country’s abundant hydropower resources to sustain environmentally friendly mining operations.

Financial Backing and Growth Potential

The funding required for the upgrade will be drawn from a $500 million fund established by DHI and Bitdeer Technologies last year.

This initiative underscores Bhutan’s emergence as a significant player in the crypto sector, with DHI previously managing a crypto portfolio worth millions.

Mitigating Potential Losses

While preparations are underway to mitigate potential losses post-halving, experts hold varied perspectives on its impact.

Laurent Benayoun of Acheron Trading suggests that any reduction in mining rewards could be offset by an increase in network fees. Additionally, Jimmy Zhao of BNB Chain believes that Bitcoin-based nonfungible tokens may contribute to miner profitability.

Evolving Landscape

As the crypto industry evolves, Bhutan’s strategic investments and partnerships demonstrate its commitment to harnessing blockchain technology‘s potential while navigating regulatory and market challenges.

With Bitcoin’s halving on the horizon, stakeholders remain vigilant, exploring innovative solutions to sustain profitability in the ever-changing landscape of cryptocurrency mining.

Image by www.slon.pics on Freepik

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