Bhutan Boosts Bitcoin Mining Ahead of Halving

Bhutan is ramping up its Bitcoin mining capacity in anticipation of the Bitcoin halving event.

In preparation for the impending half of the Bitcoin supply, Bhutan has increased its ability to mine Bitcoin. According to Bloomberg, Bitdeer Technologies Group and Bhutan’s investment arm aim to enhance their Bitcoin mining operations to partially offset the income losses resulting from the impending halving event.

Bhutan to Triple its Bitcoin Mining Capacity

Druk Holding & Investments and Bitdeer, a Nasdaq-listed cryptocurrency mining company, have partnered to provide Bhutan with cutting-edge technology that will boost the nation’s mining capacity.

According to an interview with Bitdeer’s chief business officer, Matt Linghui Kong, the proposed additions will boost the Himalayan kingdom’s mining capacity by 500 megawatts by the first half of 2025.

Under those circumstances, Bhutan would have an overall capacity of 600 megawatts. In 2023, Bhutan decided to officially join the Bitcoin mining movement and begin mining the cryptocurrency.

At that time, the country was still recovering from the COVID-19 epidemic, which had caused the economy to contract by 10% in 2020.

It was for this reason that the government decided to enter the Bitcoin mining industry, which is notoriously unstable and fraught with controversy.

There was a reduction in the country’s foreign exchange reserves, an increase in the number of non-performing loans in the manufacturing and travel industries, and a 25% increase in the percentage of unemployed young people.

Bitcoin Mining Paces up Before Halving

After a near-death experience during the most recent crypto winter, Bitcoin miners are again in survival mode. This comes ahead of a code upgrade that might jeopardize revenue sources.

Their energy consumption has never been higher. An analysis by Coin Metrics revealed that cryptocurrency mining consumed a record 19.6 gigawatts of electricity this month. This is an increase from the 12.1 gigawatts that were used in 2023.

In the context of cryptocurrencies, “halving” refers to the process of halving the quantity of newly minted coins. This process occurs every four years.

This led to the miners losing half of their block incentives. In general, the halving of bitcoins helps to control supply and demand, which may increase the value of a bitcoin because there are fewer of them available.

Because Bitcoin halving generally results in the creation of a demand-supply relationship, mining Bitcoin on a steady basis becomes increasingly essential.

Because of the ongoing demand for Bitcoin, it is possible that the hash rate will increase after the halving. If the halving had occurred, this would be the case.

When the original coin is scarce, investors are more inclined to pay outrageous amounts for a small part of the asset exposure. This is due to investors’ desperateness for the coin.