Overview
A 500-megawatt (MW) Bitcoin mining data center is set to launch in phases by mid-2025 at Bhutan's Jigmeling Industrial Park. This collaborative project between Bitdeer Technologies and Druk Holding & Investments (DHI)—the commercial arm of Bhutan’s Royal Government—aims to advance the country’s Bitcoin mining industry. Announced on May 3, 2023, the initiative leverages Bhutan’s low-cost hydropower for energy-efficient mining operations.
Project Timeline and Phases
- Initial Phase: Operations begin Q1 or mid-2025 with partial capacity.
- Full Capacity: Expected by December 2025 or Q1 2026, reaching 500 MW.
This marks Bitdeer and DHI’s second major mining venture. Their first facility in Gedu (100 MW capacity) commenced operations in mid-2023.
Key Features and Benefits
Funding Model:
- Bitdeer secures construction financing.
- Bhutan contributes minimal capital as a strategic partner, assuming no financial risk.
Revenue Streams for Bhutan:
- Profit-sharing and taxes.
- Electricity sales and land lease fees.
- Job creation (120–150 local positions).
Operational Flexibility:
- Facilities can winterize during Bhutan’s high-cost power import season.
Cost Advantages and Profitability
- Hydropower Edge: Bhutan’s abundant renewable energy lowers production costs to $30K–$34K per Bitcoin, ensuring robust profit margins.
Daily Output:
- 500 MW Facility: 9–10 BTC/day (~$720K–$800K at current prices).
- Combined 600 MW Operations (Gedu + Jigmeling): 11–12 BTC/day (~$880K–$960K).
After covering costs (~50% of revenue), profits are shared between Bitdeer and Bhutan, securing long-term economic stability for the nation.
Market Context
With Bitcoin’s 2024 halving event increasing mining difficulty, Bhutan’s sustainable hydropower model positions it competitively in the global mining landscape. This project exemplifies how renewable energy can drive scalable, eco-conscious crypto mining.
👉 Explore how renewable energy transforms crypto mining
FAQs
Q: Why is Bhutan an ideal location for Bitcoin mining?
A: Its hydropower resources offer low-cost, sustainable energy critical for high-efficiency mining.
Q: How does Bhutan benefit financially?
A: Through profit-sharing, taxes, electricity sales, and job creation—without upfront capital risk.
Q: What happens to the facility in winter?
A: Operations may pause to avoid expensive power imports, resuming when hydropower is abundant.
Q: How does this project impact global Bitcoin mining?
A: It sets a precedent for eco-friendly mining, reducing reliance on fossil fuels.