The commercial arm of the Royal Government of Bhutan, Druk Holding & Investments (DHI), and Bitdeer, a cryptocurrency mining company that is listed on the Nasdaq and is led by Jihan Wu, the former CEO of Bitmain Technologies, announced a strategic alliance.
According to a press statement issued by the firm on Wednesday, the partnership’s goal is to establish cryptocurrency mining operations that use hydroelectric power that is “100% carbon-free” in a new mining facility in the Kingdom of Bhutan.
Bitdeer and DHI plan to accomplish this by establishing a closed-end fund to raise $500 million “from the international community,” according to the press release.
By the end of the month, the fundraising event is anticipated to start.
In a statement, 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.” According to Wu, it is believed that the project would stimulate regional tech development.
By merging with Blue Safari Group to form a special purpose acquisition company (SPAC), Singapore-based Bitdeer, which has previously established cryptocurrency mining data centers in the U.S. and Norway, went public last month on the Nasdaq exchange.
Bitdeer aims to put up a 100-megawatt facility in Bhutan, according to a regulatory filing. It’s anticipated that work will begin in the second quarter of 2023 and finish between July and September.
A Bhutanese publication claims that DHI joined the local mining industry before its competitors at a time when Bitcoin was valued at about $5,000.
The report asserted that DHI had previously borrowed money from BlockFi and Celsius, two now-defunct crypto lending companies. Ujjwal Deep Dahal, the company’s CEO, claims 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.”