Oman: A Growing Player in Bitcoinย (BTC) Mining
In todayโs dynamic worldwide environment, countries are fiercely competing for dominance in the Bitcoinย (BTC) mining industry. Onย theย brighterย side, Oman has resurfaced as a dark horse with bigย intendsย to capture 7% of the worldwide Bitcoinย (BTC) hash rate by June 2025. This goal is not just wishful thinking; it is supported by factual data presented in a recent report by Bitcoinย (BTC) mining expert Jaran Mellerud.
The Transformation of Omanโs Economy
Traditionally reliant on oil, Oman is located on the southeastern coast of the Arabian Peninsula and shares borders with Saudi Arabia, the United Arab Emirates, and Yemen. Historically, it has been the sixth- largest oil producer per capita worldwide. Nonetheless, Oman is now shifting its focus towards Bitcoinย (BTC) mining, embracing the winds of change.
Omanโs Path to Becoming a Bitcoinย (BTC) Mining Heavyweight
As of September 2023, Oman has approximately 20 MW of mining capacity in operation. This includes pilot projects by Exahertz (11 MW) and Green Data City (1.2 MW). Inย addition, there are a few MWs of unlicensed operations. With an efficiency rate of 27.5 J/TH, Omanโs current power consumption translates to 0.7 EH/s, giving it a 0.2% share of the worldwide hash rate.
By the end of 2023, Omanโs total hash rate couldย accomplish 4 EH/s, accounting for 0.9% of the Bitcoinย (BTC) mining network. This growth is mainly driven by Exahertzโs expansion to 100 MW.
Onย theย otherย hand, theย expansion doesnโt stop there. Mellerudโs projections indicate that by the Second half of 2024, Exahertz will operate 275 MW, generating 9.9 EH/s. Simultaneously, Green Data City intendsย to commission 150 MW, yielding an estimated 5.5 EH/s. Together, these efforts mightย propel Omanโs total hash rate to 15.7 EH/s in the Second half of 2024, comprising around 2.6% of the network.
Exahertz and Green Data City have long-term visions to scale up to 800 MW and 400 MW, respectively. Assuming an average efficiency of 22 J/TH, their combined 1,200 MW could potentially generate a total of 54.8 EH/s. This would represent approximately 7% of the Bitcoinย (BTC) hash rate by June 2025, according to Mellerudโs estimates. Itโs worth keepingย inย mindย that the corporations have not specified a timeline for their full expansion.
Strong Governmental Support
The Omani Government plays a vital role in facilitating Bitcoinย (BTC) mining operations. Asย ofย now, only two corporations, Exahertz and Green Data City, hold licenses for developing and operating Bitcoinย (BTC) mining facilities in the country.
Chairman of Omanโs Authority for Public Services Regulations, H.E Sheikh Mansour Bin Taleb Bin Ali Al Hinai, publicly emphasized the governmentโs support for privately-owned Bitcoinย (BTC) mining facilities. These facilities are expected to attract over $1.1 Billion in investments. He stated that this initiative aligns with Omanโs commitment to diversify its economy, integrating modern technologies while upholding ethical and sustainable practices.
Electricity rates significantly impact the profitability of Bitcoinย (BTC) mining. In Oman, licensed miners enjoy electricity tariffs below $0.04 per kWh, which is highly competitive universally. This is onย theย otherย sideย to rates for households ($0.026 per kWh) and enterprises ($0.166 per kWh).
Omanโs climate, particularly in areas like Salalah, provides a natural advantage for Bitcoinย (BTC) mining. Inย contrastย toย numerous Middle Eastern countries, Salalah advantages from a microclimate with cooler temperatures, especially during the monsoon season. This climate advantage reduces cooling costs and enhances mining efficiency.
Furthermore, the Omani Government intendsย to generate 30% of its electricity from renewable sources by 2030. Achieving this goal requires substantial development of Omanโs abundant solar resources, which perfectly aligns with the needs of Bitcoinย (BTC) miners who can profit from network fluctuations.
Omanโs strategic approach to Bitcoinย (BTC) mining is evident in its infrastructure development, governmental support, and utilization of natural advantages. Mellerudโs report foresees a promising future for the nation in the Bitcoinย (BTC) mining sector. If the projections hold true, Oman, in collaboration with other Middle Eastern countries, could capture 15% of the worldwide Bitcoinย (BTC) mining hash rate in the coming years.
Hot Take
Omanโs entry into the Bitcoinย (BTC) mining sector showcases the countryโs determination to diversify its economy and embrace emerging technologies. With its ambitious goals, supportive Government policies, and natural advantages, Oman has theย capacity to become a wholeย lotย of player in the worldwide Bitcoinย (BTC) mining landscape. Keep an eye on this growing star as it strives to capture a larger share of the market.
Currently, Bitcoin is currentlyย worth $25,854.
Bitro Conwell stands as an intellectual architect, weaving together the roles of crypto analyst, meticulous researcher, and editorial virtuoso with finesse. Amidst the digital intricacies of cryptocurrencies, Bitro’s insights resonate harmoniously with seekers of all stripes, showcasing a profound understanding. His ability to untangle the most complex threads within the crypto landscape seamlessly pairs his their editorial finesse, transforming intricacy into an artful tapestry of comprehension.
