Previously unknown to many, Bhutan, a small country in the Himalayan region, has been leveraging on its abundant clean energy resources in mining Bitcoin (BTC). The country, which has a population of less than 800,000, has been quietly accumulating cryptocurrency and mining Bitcoin since April 2019, according to Forbes.
Green Energy to Power Bitcoin Mining Operations
Based on the exposé of the business magazine, Bhutan’s immense hydroelectric potential accounts for 30% of its gross domestic product. The country has been focusing on harnessing its green energy sources, which has enabled it to power its Bitcoin mining operations.
BTC mining in Bhutan started when the value of the crypto was around the $5,000 mark per coin. Presently, Bitcoin’s value has increased to approximately $28,000 per coin, but it is uncertain whether or not Bhutan has already cashed in on the rise in its value.
Bhutan’s Partnership with Nasdaq-Listed Mining Company
The report said that the Bhutanese government is currently seeking partnerships to expand its crypto-mining operations. It is said that its officials are in talks with Bitdeer, a Nasdaq-listed mining company, to secure 100 MW of power for a new data center in the country.
The proposed partnership could increase Bitdeer’s mining capacity by around 12%, but details about the current scale and profitability of Bhutan’s BTC mining operations are unknown. The location and size of their mining farms are not publicly available, too.
Bitcoin Mining is the Cleanest Industry in the World
Amid the constant backlash from mainstream media and environmentalists, Bitcoin mining has proven itself to be one of the cleanest industries in the world. Nowadays, renewable or clean energy accounts for a little more than half of its energy sources and it only uses 0.15% of the world’s energy production based on the Q2 report of the Bitcoin Mining Council. Druk Holding and Investments (DHI), the state-owned holding company, reported that Bhutan is an ideal destination for such operations due to its cheap and abundant hydroelectric power.
Proponents like Michael Saylor, the chairman of MicroStrategy, likewise contend that industrial uses of energy other than Bitcoin mining actually contribute to 99.92% of carbon emissions worldwide. Likewise, the MicroStrategy exec emphasized that the sustainable mining of Bitcoin has a lot of potential in generating hard currency for developing countries.
Government Investment in Cryptocurrency
The reason for the Bhutanese government’s decision to keep its crypto mining project under wraps from its citizens and international partners remains unknown. However, it has now been publicly disclosed that DHI, which is run by the government, has poured out millions of dollars into cryptocurrency investments for the supposed benefit of its citizens. The bankruptcy filings of crypto lenders BlockFi and Celsius have also divulged this crucial information.
It is worth noting that a thorough examination of the LinkedIn profiles of DHI employees revealed that a considerable number of them have specified “crypto mining” as part of their professional competencies and responsibilities.
Bhutan’s move in mining Bitcoin using clean energy is an innovative approach to both profitability and environmental protection. Overall, it is a significant step towards sustainable cryptocurrency mining, and other countries can learn from its innovative approach. This should serve as a blueprint for other nations, especially developing countries, that are seeking to embrace cryptocurrency mining investments in the future.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.