1. Bitdeer partners with the Bhutan government for crypto mining operations and establishes $500M funding.
2. Funds raised will finance data centers powered by hydropower, promoting Bhutan’s economic diversification.
3. Bitdeer expands to Asia, has 6 mining sites globally, and suffered losses due to industry challenges.

Bitdeer (BTDR) has announced that it has entered into a partnership with the Bhutan government to develop cryptocurrency mining operations in the Southeast Asian nation.

As per a statement sent via email on Wednesday, the Nasdaq-listed mining company, along with the commercial arm of the Bhutan government, Druk Holding & Investments, will set up a fund worth $500 million. The aim of this fund is to secure funding from global investors for the cryptocurrency mining venture, and fundraising efforts are expected to commence this month.

The primary purpose of the $500 million fund raised through the partnership between Bitdeer and Druk Holding & Investments is to finance the construction of data centers in Bhutan. These data centers will run on hydropower, which currently supplies almost all of the country’s electricity. The primary objective of this venture for Bhutan is to hasten the nation’s digital transformation and promote economic diversification by exploring emerging sectors.

According to Bitdeer, this partnership marks a significant expansion of their operations into the Asian market. The Singapore-based company currently has six active mining sites in Washington State, Texas, Tennessee, and Norway.

Bitdeer recently went public on the Nasdaq through a special purpose acquisition company (SPAC) called Blue Safari Group Acquisition Corp. However, since the listing, the company’s stock, BTDR, has declined by almost 30%, and as of Tuesday’s closing, it was trading at $7.19.

Like many other players in the industry, Bitdeer also had a challenging year in 2022. The company suffered losses of $62.4 million, a significant decline from the $82.6 million profit it recorded the previous year. The cryptocurrency mining industry as a whole was hit hard by the combination of declining crypto asset valuations and increasing energy costs, with several companies even having to file for bankruptcy due to the financial strain.