Bhutan's Bitdeer Technologie plans $500 mn fund for bitcoin, crypto mining

livemint.com:

Bhutan’s investment arm and Nasdaq-listed company Bitdeer Technologies Group plan to seek investors for a fund worth up to $500 million that will be used to develop green crypto mining in the Himalayan kingdom.

Fund raising targeting institutional investors will begin at the end of May and the goal is to set up carbon-free digital mining that taps Bhutan’s abundant hydroelectric power, according to a joint statement Wednesday.

Mining is the least risky way for Bhutan to tap crypto opportunities and for now the nation will focus on Bitcoin, Ujjwal Deep Dahal, the chief executive officer of the investment arm, Druk Holding & Investments, said in an interview.

“It’s important for us to look at assets that are low volume, high value, or digital assets for that matter, and try to position ourselves in a way that we can be competitive globally over time to build our economy," Dahal said.

Forest-laden Bhutan, sandwiched between China and India, has a population of about 777,000 and has long sought to diversify an economy reliant on hydropower revenues. Druk manages the government’s investments in traditional areas like stocks, bonds, technology, energy and real estate but also crypto mining and investment under what it calls a “future-facing" strategy.

Bitcoin miners race to solve complex mathematical puzzles using energy-hungry computing rigs, earning new supply of the token in return. That’s led to criticism of the environmental fallout when dirty fuels supply the power.

Miners were squeezed by a crash in digital-asset prices, rising energy costs and increased competition last year. Conditions have improved in 2023 amid a rebound in the crypto market.

Singapore-based Bitdeer, owned by Chinese entrepreneur Jihan Wu, is one of