Bitdeer to Raise $500M for Bitcoin Mining Operation in Bhutan

The Nasdaq-listed Bitdeer, a crypto mining firm helmed by the former CEO of Bitmain Technologies Jihan Wu, today announced a strategic partnership with Druk Holding & Investments (DHI), the commercial arm of the Royal Government of Bhutan.

The scope of the partnership is to launch crypto mining operations that will deploy "100% carbon-free" hydroelectric power in a new mining center in the Kingdom of Bhutan, the company said in a press release Wednesday.

To that end, Bitdeer and DHI plan to establish a closed-end fund with a goal of raising up to $500 million “from the international community,” read the announcement.

The fundraiser is expected to begin by the end of the month.

“We are excited to be working alongside DHI in accessing Bhutan’s zero-emissions power to sustainably enable the blockchain technologies that will eventually form an immutable bedrock for a global store of value,” Bitdeer chairman Jihan Wu said in a statement. The venture is hoped to also drive tech growth in the region, said Wu.

The Singapore-based Bitdeer, which has already deployed cryptocurrency mining data centers in the U.S. and Norway, went public last month on the Nasdaq exchange through a special purpose acquisition company (SPAC) merger with Blue Safari Group.

As per a regulatory filing, Bitdeer is planning to establish a 100-megawatt operation in Bhutan, with construction scheduled to commence in the second quarter of 2023 and conclude between July and September.

Bitdeer didn't immediately respond to Decrypt's request for comment.

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Betting on cheap hydropower

Sandwiched between the Tibet Autonomous Region of China and several northern states of India, Bhutan boasts an abundance of low-cost electricity generated by hydroelectric plants built along the banks of the country’s rivers.

This makes Bhutan a natural choice for crypto mining, with a recent The Bhutanese report claiming that DHI was one of the early entrants in the local mining industry when the price of Bitcoin was around $5,000.

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The last time the leading cryptocurrency traded at those levels was in March 2020, according to CoinGecko.

Notably, the report also said DHI has previously borrowed funds from the now-bankrupt crypto lending companies BlockFi and Celsius, with the company’s CEO Ujjwal Deep Dahal asserting that “Bhutan had borrowed some digital assets as a loan to make certain investments and everything has been paid back and settled with no dues.”