Bhutan is a Buddhist kingdom with less than 800,000 inhabitants. It is one of the smallest countries in the world and is hidden among the valleys and mountains that make up the Himalayas. Their economy is heavily based on tourism, but for years they have been working on a very specific resource: Bitcoin mining.

Secretly and because Bitcoin is worth $5,000. Local media confirmed the news was Bhutan. A government representative confirmed that indeed the country started mining bitcoin when their value was around $5,000.

You have to go back to April 2019, before the massive rise of the cryptocurrency. It’s a clandestine operation, unlike countries like El Salvador, which openly declare their commitments. These plans became known this week, making Bhutan one of the few countries with state-run Bitcoin mining.

Thanks to hydroelectric power. Bhutan’s bet on Bitcoin mining has an added advantage. Almost all of the country is provided with renewable energy, primarily hydroelectricity. Thanks to this cheap energy from water, Bhutan has been able to operate mining sustainably and economically very profitably.

It is similar to the situation in many African countries, with the difference that it is the state that invests decisively in infrastructure.

Long-term bet. The extent of Bitcoin mining in Bhutan is still a mystery, as neither the number nor location of these crypto mining farms has been verified. State wealth fund ‘Druk Holding and Investments’ (DHI) is known for its involvement and explains through its CEO that Bhutan “miners with a long-term mindset” and always “prioritises consumption and local industries”.

From 100 to 550 MW. As revealed by Forbes, Bhutan is negotiating with Singapore’s Bitdeer company and one of the largest crypto mining companies to gain access to at least 100 MW of power, with up to 550 MW.

According to Bitdeer itself, this deal will increase capacity by 12% and construction is expected to begin in the second quarter of 2023 and finish in the third quarter of 2024.

Bhutan has been flirting with cryptocurrencies as an alternative for years. The discovery that Bhutan has been investing in Bitcoin mining for years was unknown, but it is not the first time this country has been associated with the crypto industry. In 2021, Ripple helped the Royal Monetary Authority of Bhutan test its own virtual currency (CBDC).

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