Kingdom of Bhutan started mining bitcoin in 2019


In addition to cryptocurrency investment, mining business

It turned out that the investment department of the Kingdom of Bhutan has been mining the crypto asset (virtual currency) Bitcoin (BTC) since 2019.

Just last month, it was reported that he had invested several billion yen in multiple virtual currencies, but it seems that he was not only investing but also mining. According to the person in charge, mining started when the price of Bitcoin was still about 690,000 yen (about $5,000) in April 2019.

Bhutan’s sovereign wealth fund Druk Holding & Investments (DHI) is mining using the country’s abundant hydropower resources, which are located in the Himalayas. DHI confirmed to local media outlet The Bhutanese that the business is profitable. The size of the mining business has not been disclosed.

By selling the mined bitcoin, it is said that it is used to pay for electricity and mining machines. He said that he basically sells the mined bitcoins, but he also holds some for the long term, especially keeping in mind the possibility that the price will rise after the halving in 2024.

DHI also considers domestic power demand. According to DHI, the priority for power supply is domestic consumption, local industry and the private sector. In the winter, when hydroelectric power production is low, mining machines are shut down, and electricity is imported when it is cheaper.

connection: Bhutan government investment fund invests billions of yen in virtual currency = news

What is half-life

It refers to the timing when the mining reward (= new issue amount) of virtual currency such as Bitcoin is reduced by half. Many cryptocurrencies have an “issue limit” to prevent inflation, and the system is designed so that the amount of new issuance is halved each time the halving period occurs at regular intervals. It is also a notable event peculiar to cryptocurrencies, as the scarcity value increases significantly as the supply decreases, making it easier for the price to rise.

▶Cryptocurrency Glossary

Construction of a new mining facility

In addition, Bhutan is currently in talks with Nasdaq-listed cryptocurrency mining company Bitdeer to expand its mining scale.

Bitdeer said in a note to investors that a new Bitcoin mining data center is set to break ground in Bhutan this quarter (April-June), and Bitdeer will secure access to 100 megawatts (MW) of electricity at the facility. He said he hopes to

The new mining facility is said to be completed in the third quarter (July-September) of 2024. It’s unclear at this time who will own the property.

Invest in the latest technology

DHI also said that investing in cryptocurrencies is not a matter of “FOMO (Fear of Missing Out),” but rather an “investment to introduce technology and benefit from it.” ing.

By adopting a forward-looking investment strategy and engaging with rapidly evolving technologies, he continued, he hopes to build a more sustainable Bhutan.

Bhutan, a small country with a population of less than 800,000 and surrounded by mountainous nature, is investing in cutting-edge technologies such as blockchain.

For example, DHI is investing in building a self-sovereign national digital identity platform that allows users to manage their own identities, which is designed and built in Bhutan. It looks like they are also nurturing human resources involved in the latest industries.

DHI explained that Bhutan is pushing ahead with digital innovation and is investing in related sectors to stay at the forefront of global innovation.

The country is also piloting a CBDC (Central Bank Digital Currency) in collaboration with Ripple.

connection: Ripple to pilot Central Bank Digital Currency (CBDC) with Kingdom of Bhutan

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