Bitdeer, a mining company led by former Bitmain Technologies CEO Jihan Wu and listed on Nasdaq, has revealed a strategic alliance with Druk Holding & Investments (DHI), the business arm of the Royal Government of Bhutan. The partnership aims to establish a mining facility in the Kingdom of Bhutan, using hydroelectric power that is “100% carbon-free.” The announcement was made in a press release issued by the firm on Wednesday.
Bitdeer and DHI have announced their plans to launch a closed-end fund aimed at gathering up to $500 million “from the international community,” as part of their effort to achieve their goals. The fundraising campaign is scheduled to commence by the end of this month.
Bitdeer chairman Jihan Wu stated: “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.” He also added this might help drive technological growth further in the region.
Bhutan is well positioned for bitcoin mining due to its proximity to Tibet and northern India, as well as its low-cost hydroelectricity generated by riverside plants. According to earlier reports, DHI was an early player in the local mining industry when Bitcoin was valued at $5,000.
Bitdeer, headquartered in Singapore, has already established its mining data centers in Norway and the United States. Last month, the firm went public on Nasdaq following a special purpose acquisition company (SPAC) merger with Blue Safari Group.
According to a regulatory filing, Bitdeer is preparing to build a 100-megawatt mining center in Bhutan, and the construction is planned to begin in Q2 2023, with a targeted completion timeframe between July and September of the same year.