Bhutan Expands Bitcoin Mining to 600 MW by 2025
Bhutan, the landlocked nation known for its commitment to Gross National Happiness, is expanding its Bitcoin mining operations. The country, which once relied heavily on mining fees, is now diversifying its energy use and aiming for operational efficiency even in the face of market fluctuations.
Bhutan's journey into cryptocurrency mining began in 2017 as a response to economic challenges. It utilised its abundant hydroelectric power to operate Bitcoin mining until 2019. Now, the country is planning a significant capacity increase, from 100 MW to 600 MW, with the target date set for the first half of 2025.
In a strategic move, Bhutan has partnered with Bitdeer, a leading mining company known for its efficiency. The joint venture with Druk Holding & Investments, Bhutan's investment arm, was established in 2023. The collaboration aims to develop hydro-powered Bitcoin mining operations, with plans to scale capacity up to 600 MW. Bitdeer's production cost of around $20,000 per Bitcoin makes it an attractive partner for Bhutan, which has access to cheap energy from its hydropower resources.
Bhutan is preparing for future market conditions. It aims to maintain operational efficiency even if the Bitcoin price declines. The country is also expanding its mining capacities ahead of the next Bitcoin halving, with plans to boost mining through a $500 million investment from Bitdeer.
Bhutan's expansion of Bitcoin mining, driven by its cheap and renewable energy, is set to continue. With strategic partnerships and a focus on operational efficiency, the country is positioning itself to weather market fluctuations and capitalise on future opportunities in the cryptocurrency sphere.
