Bhutan’s DHI to offset halving effects with Bitcoin mining upgrade

The Kingdom of Bhutan’s sovereign concern limb and its Bitcoin (BTC) mining partner, Bitdeer Technologies, volition summation their BTC mining capableness to offset the imaginable interaction of the mining rewards simplification aft the Bitcoin halving. 

Druk Holding and Investments (DHI), the concern limb of the royal authorities of Bhutan, and the Nasdaq-listed Bitdeer reportedly announced that they volition put successful expanding their mining project’s capableness sixfold up of the halving.

Bitcoin mining profitability illustration for the archetypal 4th of 2024. Source: BitInfoCharts

Bitdeer’s main concern serviceman said the planned upgrades volition rise Bhutan’s mining capableness by 500 megawatts by the archetypal fractional of 2025. This would summation the Himalayan kingdom’s full mining capableness to 600 megawatts.

The funds needed to present caller hardware for the upgrade volition beryllium taken from the $500 cardinal money the duo announced past year. On May 3, 2023, the 2 entities announced the creation of a closed-end money valued astatine $500 million.

Bitdeer president Jihan Wu said astatine the clip their institution would enactment with DHI to usage Bhutan’s zero-emission vigor to enactment blockchain technologies. Wu said that the money would assistance make planetary stakeholder networks that could assistance Bhutan’s exertion sector.

Bhutan’s DHI, which manages implicit $2.9 cardinal successful assets, had softly grown a crypto portfolio earlier it was brought to light successful the bankruptcy proceedings of crypto firms Celsius and BlockFi.

A Forbes study highlighted that the DHI placed millions successful crypto and was a lawsuit of the 2 bankrupt companies.

Local reports besides highlighted that Bhutan has been utilizing hydropower to excavation BTC since 2019 erstwhile the terms was astir $5,000.

Related: Once unprofitable BTC miners are turning their machines backmost connected — Analyst

While the 2 companies are preparing to offset imaginable losses aft the Bitcoin halving, others judge that the halving of BTC rewards would not impact profitability.

Laurent Benayoun, the CEO of liquidity steadfast Acheron Trading, said that the mining rewards are going to beryllium “compensated by an summation successful web fees.”

BNB Chain elder solution designer Jimmy Zhao believes that Bitcoin-based nonfungible tokens could besides help with miner profitability aft the Bitcoin halving.

As of February 2024, crypto plus manager Grayscale estimated that Bitcoin Ordinals generated implicit $200 cardinal successful transaction fees for miners.

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