Bhutan has emerged as one of the key players in the world of bitcoin mining recently. Its holdings have now been estimated to be around $780 million.
This has come after Arkham Intelligence identified Bhutan as the fourth-largest governmental holder of bitcoin in the world. Unlike many other countries that acquire Bitcoin due to seizures or purchases, the wealth in cryptocurrencies by Bhutan comes from its own mining activities. This is because the country has an abundance of hydropower resources that it can tap to run its mining facilities.
A Unique Mining Strategy
The Kingdom of Bhutan has been mining Bitcoins since at least 2017, but it was only until last year that it stepped up measures to boost its operations significantly. Druk Holding & Investments, Bhutan’s investment arm and a government body, oversees the mining activities.
BREAKING: BHUTAN GOVERNMENT’S $750M BTC NOW ON ARKHAM
Bhutan’s Bitcoin holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by the Kingdom of Bhutan’s investment arm, Druk Holdings.
Arkham is the first to publicly identify these… pic.twitter.com/a8ScUNJJ9F
— Arkham (@ArkhamIntel) September 16, 2024
The country built several mining facilities throughout its mountains and the largest one on the former Education City project site. This strategic decision would not just seize available infrastructure but also would fall in line with the pillars of sustainability Bhutan commits to.
The nation’s focus on eco-friendly practices is further exemplified by its partnership with Bitdeer Technologies Group, which aims to develop a carbon-neutral mining operation.
The partnership will increase Bhutan’s mining capacity from 100 to 600 megawatts by 2026. This ambitious proposal shows Bhutan’s ability to lead cryptocurrency and diversify the economy.
Bhutan is rated as a lower-middle-income country, and traditionally, it has relied on hydropower, tourism, and agriculture. In such a context, this shift toward digital assets is very significant.
Image: Rollercoin
Bitcoin Mining: Economic Implications
Bhutan is taking this step forward with Bitcoin mining, not just to pile wealth but push forward their economic strategy. Over one-third of the country’s GDP is tied up in Bitcoin now, and all that the government can do is find new revenue streams to lift its economy.
With the beginning of mining operations, the country has witnessed increased consumption of domestic energy, thereby resulting in the decrease of hydropower exports to the neighboring country of India, which had been a traditional source of revenue for Bhutan.
The new industry would remain subject to the regulatory laws thanks to steps implemented by the Royal Monetary Authority of Bhutan. The Know Your Customer (KYC) regulations and consumer protection, together with creating a secure environment for investing in digital assets, are among the implemented steps.
As global interest in cryptocurrencies grows, Bhutan’s proactive approach could serve as a model for other nations looking to enter this space.
Featured image from Pexels, chart from TradingView