Bhutan, a small country nestled in the Himalayas, has found a new use for its abundant supply of hydroelectricity: bitcoin mining. According to recent reports, a local company is using the country’s rivers to power a mining operation.
Indeed, Bhutan seems to be all in on crypto technology: it has invested tens of millions of dollars in cryptos from now-bankrupt lenders BlockFi and Celsius. The country has also begun mining Bitcoin (BTC) using its hydro grid since the BTC price returned to $5,000 in 2019, according to recent revelations.
Bhutan wants to increase mining capacity by 12 percent
The small Asian country has a population of less than 800,000 and has been using green energy to mine the king of crypto-assets for several years. The information came out in local newspaper The Bhutanese, which tells us that these mining activities account for 30% of its GDP.
The kingdom does not intend to stop there. Bhutan wishes to develop this activity in particular through various partnerships. The country is negotiating with Nasdaq-listed mining company Bitdeer to obtain 100 megawatts of power for a bitcoin mining data center in Bhutan. The partnership would increase Bitdeer’s mining capacity by about 12 percent.
According to Ujjwal Deep Dahal, the CEO of Druk Holding and Investments (DHI), the country’s 100% government-owned financial arm responsible for investing in cryptocurrencies, some of the revenue from the BTC mining business is used to fund operational costs, and some is kept for speculation.
Without revealing the scale of the facilities, the CEO also said that the country’s hydroelectric grid makes it possible to mine Bitcoin economically, offering the opportunity to invest in quality equipment with the earnings generated in order to optimize production.
Overall, Bhutan’s use of hydropower to mine Bitcoin is a positive development for cryptos and the renewable energy sector. By harnessing the power of its rivers to generate revenue, Bhutan is setting an example for other countries seeking to balance economic growth with environmental sustainability.