July 20, 2024

CoinHirek

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Bhutan’s DHI Will Enhance Bitcoin Mining to Counteract the Consequences of the Halving.

2 min read

Prior to the Bitcoin halving, Druk Holding and Investments and mining company Bitdeer planned to enhance their mining capacity in Bhutan six times.

To counteract the possible effects of the mining incentives drop following the Bitcoin halving, Bitdeer Technologies, a Bitcoin mining partner, and the sovereign investment arm of the Kingdom of Bhutan will boost their capacity for mining BTC.

The investment arm of the Bhutanese royal government, Druk Holding and Investments (DHI), and Bitdeer, a company listed on the Nasdaq, reportedly declared that they will contribute to boosting the capacity of their mining project six times before the deadline.

By the first half of 2025, the proposed upgrades, according to Bitdeer’s chief business officer, will increase Bhutan’s mining capacity by 500 megawatts. The Himalayan kingdom’s overall mining capacity would rise to 600 megawatts as a result.

The $500 million fund that the two created last year would be used to provide new gear for the update. The two organizations declared on May 3, 2023, that a $500 million closed-end fund had been established.

At the time, Bitdeer chairman Jihan Wu said that his company would collaborate with DHI to utilize Bhutan’s zero-emission electricity for blockchain technology support. According to Wu, the fund will support the creation of global stakeholder networks that could benefit Bhutan’s technology industry.

Before it was revealed in the bankruptcy cases of cryptocurrency companies Celsius and BlockFi, Bhutan’s DHI, which oversees more than $2.9 billion in assets, had subtly developed a cryptocurrency portfolio.

According to a Forbes story, the DHI was a customer of the two insolvent companies and had invested millions in cryptocurrency.

According to local reports, Bhutan has been mining Bitcoin using hydropower since 2019, when the price was approximately $5,000.

Others think that the halving of Bitcoin awards would not have an impact on profitability, while the two companies are getting ready to make up for any losses that may result from the BTC halving.

The CEO of liquidity company Acheron Trading, Laurent Benayoun, stated that an increase in network costs will “compensate” the mining rewards.

Jimmy Zhao, a senior solution architect at BNB Chain, thinks that nonfungible tokens based on Bitcoin might also boost miner profitability following the halving of Bitcoin.

According to estimates from cryptocurrency asset manager Grayscale, Bitcoin Ordinals brought in over $200 million in transaction fees for miners as of February 2024.

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