According to the reports, Bhutan uses the Himalayan rivers to generate energy to mine Bitcoin. Bhutan is optimistic about Bitcoin BTC. Since it was discovered that the tiny kingdom in the Himalayas had been covertly acquiring cryptocurrency, it has also started mining Bitcoin.
Additionally, the nation, with a population of less than 800,000, uses green energy to run its Bitcoin mining operations.
Bhutan, well-known for its emphasis on “Gross National Happiness” and beautiful landscapes, has discovered ways to harness its enormous, which accounts for 30% of its gross domestic product.
According to the Bhutanese reports, officials confirmed that mining started when Bitcoin was around $5,000 in April 2019. The price per Bitcoin has since soared to roughly $28,000 per coin at the time of writing.
DHI officials assured that the risks associated with cryptocurrencies are mitigated, considering the company is not indulging in directly selling and buying digital assets. According to DHI, the investment pays off by selling Bitcoin to cater to the mining operational costs.
The company has clarified that investing in Bitcoin mining is strategic rather than motivated by a desire to take advantage of the new technology (FOMO).
Moreover, DHI is putting together a team of cryptocurrency specialists as part of this strategy, and it is taking advantage of regulated cryptocurrency exchanges worldwide.
Surplus Of Electricity
Bhutan’s mining operation is powered by its renewable energy source, which is generated through hydro projects.
According to the analysis, the country generates nearly 100% of its electricity from renewable sources, which helps to create a surplus of electricity, making it ideal for Bitcoin mining.
A statement from DHI states that “our portfolio contains investments across a range of asset classes that deliver exposure to traditional sectors and the industries driving the modern economy.
This includes global equities, fixed income and venture capital investments in promising startups, international and domestic real estates, renewable energy including hydropower generation, biotech, health tech, life sciences and agritech, and digital asset mining and investment”.
The kingdom has looked into partnerships to increase the scope of its mining operations. Notably, it is attempting to secure 100 megawatts of power for a Bitcoin mining data center in Bhutan by negotiating with the Nasdaq-listed mining company Bitdeer.
Bitdeer’s mining capacity would increase by about 12% through this partnership.
Since there needs to be more information about Bhutan’s mining farm’s location, size, and economic viability, the scope of its mining operations remains a mystery.
Some Durk Holding and Investments (DHI) staff members have “crypto mining” as their tasks and skills on their LinkedIn profiles.
However, the government has not disclosed the project to its citizens or international partners. At the same time, it is known that the state-owned holding company DHI has invested millions of dollars in digital cryptocurrency holdings. Though, the funds were managed on behalf of its people.
Even though the media is revealing, Bitcoin mining is the world’s cleanest industry, with over 50% of its energy sources being renewable or clean energy.
Michael Saylor, Microstrategy chairman, elaborates that “99.92% of carbon emissions in the world are due to industrial uses of energy other than Bitcoin mining”. However, due to cheap, abundant hydroelectric power, DHI reported that Bhutan is an ideal destination for mining Bitcoin.