In an exclusive report by Forbes, Bhutan, the Himalayan Kingdom, discreetly enters the global cryptocurrency stage, establishing the largest state-owned bitcoin mining operation. Strategically responding to heightened economic challenges due to the COVID-19 pandemic, the nation, renowned for its commitment to Gross National Happiness, secretly embraces bitcoin mining.
Under Jigme Khesar Namgyel Wangchuck’s rule, Forbes exposes Bhutan’s four clandestine bitcoin mines, identified through satellite imagery. Locations include a pilot facility near Dochula Pass, another near Trongsa (the ancestral Wangchuck seat), a third in the Dagana forest, and the largest on the site of the abandoned $1 billion “Education City” government project.
Druk Holdings & Investment (DHI), Bhutan’s sovereign investing arm, confirms the mines’ existence but remains tight-lipped due to commercial sensitivity. The kingdom’s bitcoin initiative arises from declining tourism revenue and the need for economic diversification.
Controversies swirl around Bhutan’s bitcoin mines, citing concerns about increased power usage and potential strains on hard currency reserves. DHI plans to sell part of its bitcoin stockpile to fund a 50% salary hike for government officials amid economic challenges, including a trade deficit and a dwindling hard currency reserve.
Bhutan also partners with Bitdeer, a Singaporean bitcoin mining giant, constructing a 600 MW facility in Gedu. DHI will supply electricity, aiming to create jobs and establish a computing sector in Bhutan.
This unexpected move into blockchain and bitcoin mining underscores Bhutan’s commitment to innovative solutions amidst economic uncertainties. As the nation navigates challenges, its foray into the cryptocurrency space exemplifies a willingness to embrace new technologies and seize economic opportunities.
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