Bhutan Seeks to Raise $500 Million to Bolster Bitcoin Mining Operations: Report

Druk Holding & Investments – the investment arm of the Royal Government of Bhutan – partnered with the Nasdaq-listed company – Bitdeer Technologies Group – to introduce a $500 million fund that should support bitcoin mining activities in the Himalayan country.

Recent sources suggested that the nation might have been secretly producing BTC since 2017, using its vast amount of hydropower. 

Bhutan’s Mission to Become a BTC Mining Hub

The government of the landlocked country in South Asia seems determined to establish the region as a leading factor in the bitcoin mining scene. For that purpose, Druk Holding & Investments collaborated with Bitdeer to raise half a billion-dollar fund. The financing could develop green crypto mining in the area by deploying Bhutan’s hydroelectricity resources. 

The fund is expected to start targeting institutional investors at the end of May, whereas Druk and Bitdeer will also participate as financial backers. Ujjwal Deep Dahal – CEO of Bhutan’s investment arm – believes entering the BTC mining sector is the least risky way for the country to join the industry.

“It’s important for us to look at assets that are low volume, high value, or digital assets for that matter, and try to position ourselves in a way that we can be competitive globally over time to build our economy,” he added.

Bitdeer – a crypto mining giant based in Singapore – aims to establish a 100-megawatt operation in Bhutan. Construction should start during the second quarter of the year and be completed by September. 

Recent sources hinted that Bhutan might have hopped on the BTC mining bandwagon as early as 2017. A government representative told Forbes earlier this week that the country joined the ecosystem “a few years ago as one of the early entrants when the price of bitcoin was around $5,000.” 

Bhutan’s Other Crypto Forays

Besides its massive bitcoin mining plans, the country has also displayed intentions to launch a digital version of its national currency. The enterprise blockchain provider – Ripple – said in 2021 it would allow the Royal Monetary Authority (Bhutan’s central bank) to use its network for that goal:

“Today, we are proud to announce our partnership with Bhutan’s central bank, the Royal Monetary Authority (RMA), which will use Ripple’s CBDC solution to pilot a central bank digital currency (CBDC) in phases.”

The bank expects the potential move to improve cross-border payments and expand financial inclusion. Ripple said it will take into account Bhutan’s green policies, explaining that the CBDC solution would be a match for its principles:

“Ripple’s commitment to sustainability was important for Bhutan. The CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is 120,000x more energy efficient than proof-of-work blockchains.”