Bitdeer and Bhutan Government Collaborate for $500M Crypto Mining Venture
Bitdeer, a Bitcoin mining firm (BTDR), has announced its collaboration with the government of Bhutan to establish cryptocurrency mining operations in the Southeast Asian nation.
On Wednesday, an emailed statement announced that a $500 million fund will be established by Druk Holding & Investments, the commercial arm of the government, and a miner listed on Nasdaq. The aim of the fund is to raise capital from international investors for the venture, and fundraising is expected to commence this month.
The funds raised will be allocated to establish data centers in the nation, which will be fueled by hydropower, the predominant source of almost all the country's electricity. Bhutan's goal for the venture is to "accelerate the Kingdom's digital transformation and economic diversification by exploring emerging sectors."
Bitdeer has announced that their recent partnership marks a pivotal milestone in their expansion into the Asian market. With a strong foothold already established through the operation of six mining sites in Washington state, Texas, Tennessee, and Norway, this collaboration opens up exciting new opportunities for the Singaporean firm.
Bitdeer went public last month by listing on Nasdaq through a special purpose acquisition company (SPAC) called Blue Safari Group Acquisition Corp. However, since the listing, the stock has experienced a sharp decline of almost 30%. As of Tuesday's market close, BTDR was trading at $7.19.
Bitdeer, like many of its competitors, had a difficult year in 2022, experiencing losses of $62.4 million. This was in stark contrast to the previous year, which had seen the company turn a profit of $82.6 million. The mining industry as a whole struggled in the face of falling cryptocurrency valuations and increasing energy costs, which led to numerous companies filing for bankruptcy.
Source Coindesk
