Bhutan has been quietly mining Bitcoin for years since BTC was $5000
Bhutan’s largest and only state-owned holding company, Druk Holding and Investments (DHI), has confirmed that it has been mining Bitcoin (BTC) for several years as part of its diversified portfolio.
According to the company, interest in Bitcoin mining began when the maiden cryptocurrency was valued at around $5,000, but it also has a small interest in Ethereum (ETH), the local medium. The Bhutanese reported April 28.
DHI officials assured that the risks associated with cryptocurrencies are reduced, considering that the company is not involved in the direct sale and purchase of digital assets. At the same time, DHI noted that the investment pays for itself by selling Bitcoin to cover mining costs.
The company clarified that the investment in Bitcoin mining is a strategic move rather than driven by the fear of missing out on the technology (FOMO). As part of this strategy, DHI is assembling a team of cryptocurrency experts and leveraging the benefits of regulated cryptocurrency exchanges worldwide.
Finbold first reported that it emerged the landlocked Himalayan country was secretly investing millions in Bitcoin along with other digital assets. The investment revelations came after the bankruptcies of cryptolenders BlockFi and Celsius.
Surplus electricity
The mining operation is powered by Bhutan’s renewable energy source, which is generated through hydro projects. Notably, the country generates almost 100% of its electricity from renewable sources, which produces a surplus of electricity, making it ideal for Bitcoin mining.
The venture into cryptocurrency mining is part of Bhutan’s efforts to stimulate economic growth, in which technology is seen as a key element.
“Our portfolio contains investments across a range of asset classes that provide exposure to traditional sectors and the industries that drive the modern economy. This includes global equity, fixed income and venture capital investments in promising startups; domestic and international real estate; renewable energy including hydropower generation; health technology, biotechnology, life sciences and agritechnology; and digital asset mining and investment,” DHI said in a statement.
Furthermore, 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 suffered no financial losses compared to the cost of mining digital assets in Bhutan.
