Bitcoin Mining in the Himalayan Kingdom of Bhutan
Druk Holding and Investments (DHI), Bhutan’s largest and only government-owned holding company, has confirmed that it has been mining Bitcoin (BTC) for several years as part of its diversified portfolio.
Bitcoin Mining since BTC was Valued at USD 5K
The
company has revealed that its interest in Bitcoin mining began when the first
cryptocurrency was valued at around USD 5,000, but it is also slightly inclined
towards Ethereum (ETH) too, reported a local media publication, The Bhutanese,
on April 28.
DHI
officials assured that the risks associated with cryptocurrencies are
mitigated, considering that the company is not directly involved in selling or
buying digital assets. DHI also noted that the investment pays for itself by
selling Bitcoin to meet the operational costs.
The
company has clarified that the investment in Bitcoin mining is a strategic move
rather than driven by the fear of missing out (FOMO) on the technology. As part
of the strategy, DHI is assembling a team of experts in cryptocurrencies and
harnessing the benefits of regulated cryptocurrency exchanges worldwide.
The
investment revelations came to light following the bankruptcies of crypto
lenders BlockFi and Celsius. It was initially reported that the landlocked
Himalayan country was secretly investing millions in Bitcoin and other digital
assets.
Advantages of Surplus Electricity
The
mining operation is largely powered by Bhutan’s renewable energy source, which
is generated through hydroelectric projects. Notably, the country generates nearly
100% of its electricity from renewable sources, which produces a surplus of
electricity, making it ideal for Bitcoin mining in the country.
Cryptocurrency
mining in Bhutan is an effort to spur economic growth, where technology is
regarded as a key element. The cold climate of the country also supports Bitcoin mining activity.
"Our
portfolio contains investments across a range of asset classes that deliver
exposure to traditional sectors and the industries driving the modern economy.
This includes global equities, fixed income, venture capital investments in
promising startups; domestic and international real estate; renewable
energy, hydropower generation; health tech, biotech, life sciences, and
agri tech; and digital asset mining and investment," said a statement from
DHI.
DHI CEO Ujjwal Deep Dahal explained that the company had managed to repay all the loans borrowed from bankrupt crypto firms BlockFi and Celsius. He clarified that DHI did not suffer any financial losses compared to the cost of mining digital assets in Bhutan.
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