To prepare for the halving event, Bitdeer Technologies and Bhutan's investment agency are looking to grow their Bitcoin mining activities. Bhutan is ramping up its Bitcoin mining power ahead of the highly anticipated halving. Bitdeer Technologies Group and Bhutan’s investment arm are teaming up to boost their Bitcoin mining operations to offset the potential impact of the upcoming halving.

Bhutan Aims to Expand Bitcoin Mining by 2025

Druk Holding & Investments and Bitdeer, a crypto mining company listed on the Nasdaq, are working together to introduce cutting-edge technology that will triple Bhutan’s mining capabilities. By the first half of 2025, these upgrades could double the Himalayan kingdom’s mining capacity by 500 megawatts, reaching a total of 600 megawatts.

Bhutan’s Venture into Bitcoin Mining

With an eye on economic recovery following the COVID-19 pandemic, Bhutan officially entered the Bitcoin mining industry in 2023. The nation's economy had contracted by 10% in 2020, causing a decrease in foreign exchange reserves and a rise in nonperforming loans. Bitcoin mining was seen as a way to boost the economy and provide employment opportunities, especially for the youth population facing high levels of unemployment.

Bitcoin Mining Grows Ahead of Halving

As Bitcoin miners face potential revenue challenges due to an upcoming code upgrade, they are focusing on increasing their energy consumption and mining efficiency. The amount of electricity used for cryptocurrency mining increased significantly, reaching record levels this month. The halving process, which reduces the number of new coins created, can have a significant impact on miners' revenue streams, increasing the importance of consistent Bitcoin mining.

Bitcoin Halving and its Impact on Mining

Bitcoin halving, a quadrennial event that halves the block rewards for miners, plays a crucial role in balancing supply and demand in the cryptocurrency market. The scarcity created by the halving can lead to increased demand for Bitcoin, potentially driving up its value. Following a halving event, there is often a surge in mining activity as investors seek to acquire Bitcoin while it is still relatively scarce.