Celsius

Bitcoin

Impact

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bhutan’s sovereign investment arm and Bitdeer Technologies plan to increase their Bitcoin mining capacity.</li>
 <li>The increased capacity aims to offset the potential impact of the mining rewards reduction after the Bitcoin halving.</li>
</ul>
<p>Druk Holding and Investments (DHI), Bhutan’s sovereign investment arm, and Bitdeer Technologies, a Nasdaq-listed company, have announced plans to expand their Bitcoin mining project.</p>
<p>The expansion is in anticipation of the Bitcoin halving, an event that could potentially reduce mining rewards.</p>
<h2 id="increasing-mining-capacity">Increasing Mining Capacity</h2>
<p>The planned upgrades are expected to raise Bhutan’s mining capacity by 500 megawatts by the first half of 2025.</p>
<p>This expansion would boost the Himalayan kingdom’s total mining capacity to 600 megawatts.</p>
<p>The necessary funds for the upgrade will come from a $500 million fund that DHI and Bitdeer announced last year.</p>
<p>The two entities had previously announced the creation of a closed-end fund valued at $500 million on May 3, 2023.</p>
<h2 id="supporting-blockchain-technologies">Supporting Blockchain Technologies</h2>
<p>Bitdeer chairman Jihan Wu stated that the company would collaborate with DHI to utilize Bhutan’s zero-emission energy to support blockchain technologies.</p>
<p>He added that the fund would aid in developing international stakeholder networks that could benefit Bhutan’s technology sector.</p>
<p>DHI, which manages over $2.9 billion in assets, had quietly built a crypto portfolio before it was revealed during the bankruptcy proceedings of crypto firms Celsius and BlockFi.</p>
<p>Reports indicate that Bhutan has been using hydropower to mine Bitcoin since 2019 when the price was around $5,000.</p>
<p>While DHI and Bitdeer prepare to counter potential losses after the Bitcoin halving, others believe that the halving of Bitcoin rewards would not impact profitability.</p>
<p>Laurent Benayoun, the CEO of liquidity firm Acheron Trading, argued that the mining rewards would be “compensated by an increase in network fees.”</p>
<p>Jimmy Zhao, BNB Chain senior solution architect, suggested that Bitcoin-based nonfungible tokens (NFTs) could also contribute to miner profitability after the Bitcoin halving.</p>
<p>As of February 2024, Grayscale, a crypto asset manager, estimated that Bitcoin Ordinals generated over $200 million in transaction fees for miners.</p>

Bhutan’s DHI Turns to Bitcoin Mining Innovation to Counteract Halving Impact

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