Bhutan expands Bitcoin mining capacity by 500% ahead of halving

The Himalayan nation of Bhutan plans to expand its Bitcoin mining operations fivefold ahead of the upcoming halving event in April.

BREAKING NEWS: 🇧🇹 Kingdom of Bhutan increases mining capacity 6x faster #Bitcoin It was halved to 600 MW.

National state FOMO is setting in 🙌. pic.twitter.com/kLsU3fGk0U

— Bitcoin Magazine (@BitcoinMagazine) April 5, 2024

According to Bloomberg, Bhutan’s sovereign wealth fund Druk Holding & Investments is working with Bitcoin miner Bitdeer to increase capacity from 100 MW to 600 MW. The country has taken institutional interest in Bitcoin, with state funds purchasing BTC since the price was around $5,000.

Bhutan announced last year it would raise $500 million to strengthen its mining operations. By framing mining as both a commercial opportunity and a crisis mitigation tool, Bhutan has embraced Bitcoin more fully than most countries. It also has renewable hydroelectric power reserves, making it an ideal location for environmentally friendly mining.

The new investment in cutting-edge mining hardware comes as the Bitcoin network faces halving in mid-April. The event, which takes place every four years, halves block rewards for miners, impacting profits.

Bhutan cited offsetting the impact of the halving as a 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 of up to $45,000.

The remote Himalayan nation has seen Bitcoin mining as a way to boost its rural economy and jobs.