Tiny Bhutan may already be a massive Bitcoin whale

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(Kitco News) – Bhutan, the tiny Himalayan nation sandwiched between Asian supergiants India and China, could already be a major player in crypto holdings and Bitcoin mining, according to several recent reports. .

The kingdom confirmed to Forbes on April 30 that it has been using its considerable hydro resources to mine Bitcoin for years, flying under the radar since 2017, even as newer crypto-embracing nations like El Salvador come under fire. careful examination.

A new report from Bloomberg that says Bhutan’s investment arm, Druk Holding & Investments, has partnered with Nasdaq-listed Bitdeer Technologies Group to create a $500 million fund to further develop mining. cryptocurrencies in the country. mining has done so far.

It’s important for us to look at low-volume, high-value, or digital assets, and try to position ourselves so that we can be globally competitive over time to build our economy, a said Ujjwal Deep Dahal, Druks. chief Executive Officer.

Bitdeer is based in Singapore and is one of the largest crypto miners in terms of computing power. The company began trading on the Nasdaq stock exchange last month. The company plans to build a 100 megawatt bitcoin mining facility in Bhutan, with construction expected to begin in the second quarter of 2023 and end in September according to a regulatory filing.

Druk and Bitdeer intend to start contacting institutional investors at the end of this month, and the two companies will also invest in the fund.

Dahal said Druk began mining crypto on behalf of Bhutan when Bitcoin was trading around $5,000, well before its all-time high of $68,789.63 set in 2021.

It’s unclear how aggressively Bhutan has mined in the past six years, and it’s impossible to know how much BTC they sold and at what levels. But if chip imports are any indication, it goes far beyond the sandbox approach they started with.

The country has imported more than $193 million worth of computer chips over the past few years, including around $142 million in 2022 alone, accounting for 10% of Bhutan’s inbound trade and 15% of the $930 million annual budget. dollars from the government.

If these mining rigs were mining even a fraction of what their immense power-generating capacity would suggest, Bhutan might have quietly begun to emerge as a major player in the cryptosphere, with assets and profits that would be the envy of all but the biggest Bitcoin whales.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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