Bhutan's Multimillion-Dollar Bitcoin Mining Venture

Bhutan, a nation nestled in the Himalayas, has made headlines with its colossal venture into Bitcoin mining. What was initially envisioned as an "education city" project has now morphed into a monumental mining farm. The staggering $220 million allocation from the national budget underscores the country's shift toward embracing cryptocurrency projects.

Satellite data from American sources unveiled the construction of one of the world's largest mining farms in Bhutan. Strategically positioned on the southern slopes of Thimphu, the capital, this move accentuates the project's significance for the country's authorities. The Bitcoin mining initiative aims to bolster the economy of this small Himalayan state.

Interest in crypto projects surged recently as it came to light that Bhutan held substantial cryptocurrency reserves in BlockFi and Celsius accounts. Revelations about these holdings emerged during the bankruptcy proceedings of BlockFi and Celsius, uncovering information that would otherwise have remained unknown.

Bitcoin mining in Bhutan leverages locally generated hydroelectric power across four sites. Despite usually exporting energy to India, Bhutan now purchases electricity from coal-powered plants in neighboring countries during winter months. Construction of mining facilities commenced in late 2019, aligning with Bitcoin's early price surge in April 2019.

Reports suggest Bhutan's authorities are contemplating selling a portion of mined Bitcoins, aiming to allocate $72 million to raise local officials' salaries. The state-controlled investment entity, Druk Holdings & Investment, oversees all mining activities within Bhutan. Additionally, alongside the aforementioned farm, other mining projects are underway, such as Bitdeer's ambitious plans to expand its operations in Bhutan.