Bhutan, a small country nestled in the Himalayas, has been exploring the potential of cryptocurrency mining as a means of generating revenue and boosting its economy. In order to do so, Bhutan’s government has announced plans to establish a fund worth $500 million that will be used to finance crypto-mining projects and related infrastructure.
Interestingly this move has been welcomed by many within the crypto community, who sees Bhutan’s embrace of mining as a way to help legitimize the industry and promote its adoption on a broader scale, of which Jihan Wu’s Bitdeer, a leading provider of cloud-based cryptocurrency mining services happens to be among.
The Bhutan and Bitdeer Alliance
Bitdeer, known for its landmark engagements in the crypto mining space has reportedly been in talks with Bhutanese officials about collaborating on various mining projects as its involvement in the new fund could help to bring even more attention and investment to the sector.
Meanwhile, the Singapore-based company will serve as the overall partner of the fund while Druk Holding & Investments (DHI), the commercial arm of Bhutan’s government will act as a strategic partner. The fundraising is expected to commence by the end of this month, according to both entities.
Additionally, the fund raised will be channeled toward greenfield operations in Bhutan. Likewise, the partnership will create job opportunities for individuals based in the country, jobs ranging from engineering to project management, as well as supervisory opportunities.
Overall, the creation of a $500 million crypto mining fund in Bhutan represents a significant development for both the country and the wider cryptocurrency industry.
While there are certain risks and challenges associated with this endeavor, the potential rewards could be substantial for those involved. As the sector continues to evolve and mature, it will be interesting to see how Bhutan and other nations navigate the opportunities and complexities of crypto mining.
Crypto Miners face Operational Difficulties
There are also concerns about the environmental impact of crypto mining, particularly in a country like Bhutan that relies heavily on hydropower for its energy needs.
A lot of factors including increased energy costs, fall in market prices, and high mining difficulty has contributed to making the crypto sub-sector increasingly less profitable. Hence a number of players in the mining industry have had to trade off a part of their Bitcoin (BTC) holdings to repay debts and fund operations.
Due to factors that have plagued the industry and affected profitability, Core Scientific was forced to file for Chapter 11 bankruptcy protection last year. Though the industry is normalizing, firms are still watchful for headwinds ahead.
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