Media reports Bitdeer launches fund to back Bitcoin mining in Bhutan

Bitdeer has begun raising funds for the Green Bitcoin Fund, focused on investments in Bhutan’s mining industry, according to reporter Colin Wu.

The company, in partnership with the operator of the sovereign investment fund Druk Holding & Investments (DHI), aims to build a facility with a capacity of 600 MW and an expected hash rate of about 20 EH/s.

The investment term is six years, with a minimum commitment of $5 million. The first phase is expected to raise $80 million.

Bitdeer and DHI in May announced the launch of the fund to organise cryptocurrency mining in the kingdom. The parties anticipated that its size would be $500 million.

The head of DHI, Ujwal Dip Dahal, told reporters, at the time, that the company had begun mining “a few years ago” when Bitcoin was around $5,000. At that level, digital gold traded in April 2019.

In spring 2023, became known that Bhutan’s sovereign fund had become a client of the bankrupt BlockFi and Celsius. Dahal assured journalists that the structure did not suffer any financial losses.

Experts interviewed by Forbes confirmed the presence of favorable factors for Bitcoin mining in the country. Among them, specialists cited the cool climate and an excess of available electricity.

However, all generation in Bhutan comes from hydropower and falls sharply in the winter dry season due to river depletion. The country shifts from exporting energy to importing.

Sources also noted that the joint mining project between DHI and the Singapore Bhutan Association had not progressed to implementation. Authorities reportedly opposed private-sector participation. Another obstacle was logistics: the mountainous country has no sea outlet, which makes delivery, maintenance, and repair of equipment significantly difficult.

In April, Bitdeer became a public company through a reverse merger with SPAC Blue Safari Group Acquisition Corp.

In May results, the firm reported plans to launch a mining data centre in Bhutan with a capacity of 100 MW and a hash rate of 3.3 EH/s.