Bhutan has been secretly mining Bitcoin in the Himalayas for years – and doing so sustainably
The South Asian kingdom hopes to become the second country in the world to operate its state-owned crypto mine.
Bhutan, a South Asian kingdom nestled in the Himalayas, has recently revealed a secret that stunned the international financial market: the country has been quietly mining crypto for years without telling a soul – including its own citizens.
An even more striking revelation was that the country has been able to sustainably mine crypto compared to more common methods that have been widely criticized for the large amounts necessary electricity.
Bhutan has been able to mine for tokens using its vast reserves of hydropower – a renewable energy source that can largely be considered ‘green’.
Bhutan has an abundance of hydropower – a form of renewable energy that uses the power to move water to generate electricity – thanks to the ancient glaciers that feed the many rivers that flow through the country.
Energy generated by hydropower currently powers the homes of most of the country’s 777,000 people, and it represents 30 percent of the country’s gross domestic product (GDP).
But Bhutan’s recently revealed secret shows that the country has also put this vast resource to work for another purpose that could boost and sustain its economy in the future: the creation of its own crypto mines.
Bhutan is not alone in betting on cryptocurrencies for the future. The Central American state El Salvador is currently the only country in the world that operates state-owned crypto mines.
With its small size and limited resources, green crypto mining could be the solution to the economic independence of Bhutan, a country that has struggled for years to establish its self-sufficiency.
Bhutan has the advantage of the resources and environment that make the country an ideal location for digital asset mining.
Hydropower is cheap, and the country’s mountains, being so high, provide the perfect environment to cool heat-producing computers busy mining for Bitcoin. The country’s crypto mines may, at least on paper, have little or no carbon footprint at all.
Why was this a secret – and why has it now been revealed?
The South Asian kingdom has reportedly been mining “for years”, although it’s not entirely clear how long, where or what revenue it generated.
Talking to a local newspaper The Bhutanesea government official said recently that the country has started mining “a few years ago as one of the early participants when the price of Bitcoin was around $5,000 (€4,548)”.
The price of Bitcoin has since risen to $29,228.12 (€26,591.74) as of Friday.
The reason why the country has shared its secret crypto mining operation may be related to the fact that the kingdom is now looking for partners to further expand the project.
The country’s investment arm, state-owned holding company Druk Holding & Investments (DHI), and Nasdaq-listed mining company Bitdeer are reportedly seeking investors for $500 million (€454.9 million) to be used to develop green crypto mining in the kingdom.
Fundraising to create Bhutan’s carbon-free digital mining operation will begin in late May, as reported by Bloomberg.
Meanwhile, Bhutan’s larger neighbors – India and China – remain wary of crypto.
Both India’s government and central bank have taken a strong stance against it, while China officially banned crypto trading in 2021.
