Druk Holding and Investments (DHI) and Bitdeer Technologies will increase their mining capacity in Bhutan to counteract the possible effects of the Bitcoin halving.
According to reports, the Nasdaq-listed Bitdeer and Druk Holding and Investments (DHI), the investing branch of the Bhutanese royal government, have indicated that they will invest in tripling the capacity of their mining project before the halving.
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.
They will use the $500 million fund they announced last year to introduce the new hardware required for the upgrade. The two organizations declared on May 3, 2023, the establishment of a $500 million closed-end fund.
At the time, Bitdeer chairman Jihan Wu said 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 became apparent 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 halving Bitcoin awards would not impact profitability, while the two companies are preparing to make up for any losses resulting from the BTC halving.
The CEO of liquidity company Acheron Trading, Laurent Benayoun, stated that an increase in network costs would “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.
