Bhutan has amassed approximately $780 million in Bitcoin through its bitcoin mining operations that are powered by renewable energy, positioning it as one of the leading governments with significant cryptocurrency holdings.
Arkham’s Revelation
The tiny mountain-locked nation of Bhutan, with a GDP roughly equal to 3 billion dollars, has accumulated Bitcoin (BTC) amounting to 780 million dollars. Unlike numerous other governments, Bhutan’s Bitcoins were mined entirely through its mining operations that capitalize on the country’s plentiful renewable energy sources.
Initial reports suggesting substantial Bitcoin holdings by a government originated from blockchain data analysis firm Arkham. They noted that Bhutan possesses around 13,011 Bitcoins, equivalent to about $780.49 million at present market rates. This makes Bhutan the fourth-largest holder of Bitcoin among governments, outranking countries like El Salvador which only holds 5,875 BTC.
Mining Operations in Bhutan
In contrast to other countries where Bitcoin accumulation often comes from asset confiscations or expensive transactions, Bhutan’s Bitcoin holdings originate directly from mining operations, with numerous Bitcoin mining facilities spread across the country. The most significant of these is located at the site of the former Education City project, now operated by Druk Holdings, Bhutan’s investment division.
Role of Druk Holdings and Bitdeer
As a researcher, I’ve been closely following the developments in the cryptocurrency sector. In May of 2023, an exciting partnership was forged between Druk Holdings and Bitdeer, a leading mining titan. This collaboration aimed at establishing a completely carbon-neutral Bitcoin mining operation within the country. Since the onset of 2023, there has been a substantial increase in Bitcoin mining activities in Bhutan, as evidenced by data from Arkham. It’s clear that Bitdeer, a company based in Singapore, has played a pivotal role in this expansion, contributing significantly to the growth and development of cryptocurrency mining within Bhutan.
In the year 2023, Bitdeer managed to gather more than half a billion dollars for setting up cryptocurrency mining operations in Bhutan. As part of its project’s first phase, they constructed a 100-megawatt (MW) facility. By April 2024, Bitdeer unveiled their intention to boost Bhutan’s mining capacity to a staggering 600 MW by the year 2025.
Diversifying Digital Assets
Apart from Bitcoin, Druk Holdings also controls a variety of additional digital currencies. As per Arkham’s records, Druk Holdings holds about 656 Ethereum (ETH), valued at roughly $1.5 million, as well as amounts of Binance Coin (BNB) and Polygon (MATIC).
Druk is looking at different areas to strengthen Bhutan’s financial position, giving particular attention to digital assets. This investment approach is clear in Druk Holdings’ engagement with technology-based projects, including hydropower developments and forays into virtual worlds like the metaverse.
Bhutan’s Crypto Strategy
Bhutan’s fascination with cryptocurrency doesn’t stop at merely owning and mining digital assets. They are also delving into the possibility of launching their very own Central Bank Digital Currency (CBDC), which suggests a thoughtful strategy for merging digital currencies with conventional banking systems. This move underscores the growing allure of cryptocurrencies for developing countries as they seek to stimulate economic advancement.
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2024-09-17 16:11