Bhutan puts Bitcoin mining plan in motion to power up economy

The tiny Himalayan kingdom of Bhutan, known for its Gross National Happiness development indicator, is embarking on a cryptocurrency mining project as it aspires to build a 21st-century economy.

The country has teamed up with Nasdaq-listed Bitdeer Technologies Group, based in Singapore, to develop a 600 megawatt mining farm for Bitcoin, the leading cryptocurrency. Bitdeer was due to establish a closed-end fund at the end of May, aimed at raising $500 million from international investors for the project. A high-level source close to the project confirmed that the fundraising drive indeed began as planned, reports Nikkei Asia.

“While Bhutan faces geographical constraints and connectivity challenges, being landlocked and mountainous, its green and relatively cheaper power provides an opportunity to invest in digital assets to build a more connected and sustainable economy,” said Ujjwal Deep Dahal, CEO of Druk Holding and Investments (DHI), the government investment arm that is partnering with Bitdeer.

“In doing so, it will deepen local knowledge and engagement in the rapidly evolving technology landscape and equip citizens to participate in the modern global economy from within Bhutan.”

The move into crypto mining, a notoriously volatile and controversial industry, comes as the country is still recovering from the COVID-19 pandemic, which shrank the economy by 10 per cent in 2020. Foreign currency reserves have declined, nonperforming loans in the manufacturing and tourism sectors have increased and youth unemployment reached 29 per cent last year.