Uncovering Bhutan’s Covert Bitcoin Mining Operations

Bhutan has been secretly operating a state-owned Bitcoin mining facility, leveraging its abundant hydroelectric power resources.
The Bhutanese government’s undisclosed cryptocurrency investments have raised concerns about transparency and resource allocation for its citizens.

Nestled in the Himalayas, Bhutan has been silently building its own Bitcoin mining operation using the abundant hydroelectric power generated by the region’s glacier-fed rivers. Though discussions around this project have taken place since 2020, it wasn’t until recently that Bhutan’s government admitted to mining Bitcoin, revealing that the endeavor began when the cryptocurrency was valued at around $5,000. The earnings from the mining efforts are used to subsidize power and hardware costs.

Bhutan’s state-owned holding company, Druk Holding & Investments, has also secretly invested millions in cryptocurrencies, which were inadvertently exposed due to the bankruptcies of lenders BlockFi and Celsius. Presently, Bhutan is negotiating with Nasdaq-listed mining company Bitdeer to secure 100 MW of power for a Bitcoin mining data center. The secretive nature of the project raises concerns about the nation’s resource usage and lack of transparency with its citizens and international partners.

The Bhutanese government has shown interest in blockchain technology, launching a pilot for a central bank digital currency in partnership with Ripple in 2021. However, their cryptocurrency investments and mining operations have been largely kept under wraps. Bhutan’s abundant and cheap hydroelectric power offers an attractive opportunity for miners seeking to convert undervalued electricity into Bitcoin, potentially explaining the country’s secret foray into the world of crypto mining.

In conclusion, the revelation of Bhutan’s secretive bitcoin mining operations presents a fascinating case study in the utilization of renewable hydroelectric power for cryptocurrency mining. As the kingdom engages in discussions with major players like Bitdeer, it underscores the potential for countries with abundant renewable energy resources to participate in the lucrative crypto mining industry. However, the lack of transparency surrounding Bhutan’s investments and operations raises questions about its approach to managing national wealth and the importance of keeping citizens informed. Moving forward, it will be essential for nations like Bhutan to strike a balance between capitalizing on the economic opportunities offered by the crypto mining sector and ensuring transparency and accountability in their strategies.

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