Bitcoin mining company Bitdeer (BTDR) said it will work with the Bhutan government to establish cryptocurrency mining operations in the southeast Asian country.

The Nasdaq-listed miner and the government's commercial arm, Druk Holding & Investments, will establish a $500 million fund to raise money for the venture from international investors and expect fundraising efforts to start this month, according to an emailed statement Wednesday.

The funds raised will be used to construct data centers in the country. They will be powered by hydropower, which provides the country with virtually all of its electricity. Bhutan's goal for the venture is to "accelerate the Kingdom's digital transformation and economic diversification by exploring emerging sectors."

For Bitdeer, the partnership will "mark a crucial expansion into Asia," the Singapore-based firm said. It currently operates six mining sites in Washington state, Texas, Tennessee and Norway.

Bitdeer listed on the Nasdaq last month through special purpose acquisition company (SPAC) Blue Safari Group Acquisition Corp. Since listing, BTDR has fallen nearly 30%, trading at $7.19 at Tuesday's close.

Like almost all its peers, Bitdeer suffered a torrid 2022, incurring losses of $62.4 million compared with profit of $82.6 million the year before. The mining industry was squeezed between falling valuations of crypto assets and rising energy prices, with a number of firms filing for bankruptcy as a result.

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