Crypto investor Alex v. Frankenberg recently gave an exclusive look into Bitcoin mining procedures in Bhutan. Previously perceived as a country of mystique landscapes and delight, Bhutan is gradually becoming a prominent competitor in cryptocurrency mining.
The video posted on the social media ‘X’ reveals the expansive mining factories in Bhutan, which use only renewable hydroelectric power and go to great lengths to incorporate blockchain technology.
Bitcoin mining, a cryptocurrency investment undertaken by Bhutan, is more than just in the crypto space; it also explores the country’s vast hydropower potential.
In Frankenberg’s video, he expresses a concern that these mining operations are highly state-funded and planned to increase the capability of the country’s economy while at the same time remaining compliant with environmental law.
Bhutan wants to use its hydropower to mine Bitcoin, thus enabling it to benefit from the digital currency without compromising its sustainable development.
This program is facilitated by Druk Holding & Investment, the Bhutan government’s investment holding company, which has been instrumental in coordinating mining operations in Bhutan.
In addition to these operations, a partnership with Bitdeer in May 2023 has taken these efforts up, intending to increase the mining capacity from 100MW to 600MW.
The change in focus toward green mines makes Bhutan at the forefront in green mining, and sustainable crypto-mining in particular, in harmony with the nation’s philosophy of GNH.
Due to its regulators’ active approach to cryptocurrency mining, Bhutan has become the fourth largest government holder of Bitcoin in the world regarding BTC holdings that outnumber even El Salvador, where Bitcoin became a legal tender.
According to Arkham Intelligence, Bhutan possesses roughly 13,011 BTC, which is equivalent to approximately 780,490,000 USD.
This capital-intensive approach toward Bitcoin reveals Bhutan’s desire to ensure that it becomes part of the country's innovative technologies framework, which sets the nation apart from other countries that are slow to embrace cryptocurrencies.
In the global holding of Bitcoin, countries such as the US, China, and the UK acquire and hold numerous bitcoins, mainly through law enforcement.
Nevertheless, activity in Bhutan differs significantly as the state acquires bitcoins in its mines and not in the context of seizing them, which ensures a constant and systematic replenishment of the country’s reserves.