Bhutan is silently mining Bitcoin for years since BTC was $5,000

Bhutan’s largest and only government-owned holding company Druk Holding and Investments (DHI), has confirmed that it has been mining Bitcoin (BTC) for several years as part of its diversified portfolio. 

According to the company, its interest in Bitcoin mining began when the maiden cryptocurrency was valued at around $5,000, but it also has a slight interest in Ethereum (ETH), the local media outlet The Bhutanese reported on April 28. 

DHI officials assured that the risks associated with cryptocurrencies are mitigated, considering that the company is not involved in direct selling and buying digital assets. At the same time, DHI noted that the investment pays for itself by selling Bitcoin to cater for the mining operational costs. 

The company clarified that the investment in Bitcoin mining is a strategic move rather than driven by the fear of missing out (FOMO) on the technology. As part of this strategy, DHI is assembling a team of experts in cryptocurrencies and harnessing the benefits of regulated cryptocurrency exchanges worldwide.

Finbold initially reported that it emerged that the landlocked Himalayan country was secretly investing millions in Bitcoin alongside other digital assets. The investment revelations came to light following the bankruptcies of crypto lenders BlockFi and Celsius. 

Surplus of electricity

The mining operation is powered by Bhutan’s renewable energy source, which is generated through hydro projects. Notably, the country generates nearly 100% of its electricity from renewable sources, which produces a surplus of electricity, making it ideal for Bitcoin mining.

The venture into cryptocurrency mining is part of Bhutan’s efforts to spur economic growth, where technology is viewed as a key element. 

“Our portfolio contains investments across a range of asset classes that deliver exposure to traditional sectors and the industries driving the modern economy. This includes global equities, fixed income and venture capital investments in promising startups; domestic and international real estate; renewable energy including hydropower generation; healthtech, biotech, life sciences, and agritech; and digital asset mining and investment,” said a statement from DHI.

Furthermore, DHI CEO Ujjwal Deep Dahal explained that the company had managed to repay all the loans borrowed from bankrupted crypto firms BlockFi and Celsius. He clarified that DHI did not suffer any financial losses compared to the cost of mining digital assets in Bhutan.