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Bhutan Quietly Builds Bitcoin Stockpile through Mining

Bhutan's Covert Bitcoin Mining Op Shows 'No Money Lost'

Bhutan flag. Credit:

Mon, 01 May 2023, 09:56 am UTC

Bhutan has been quietly accumulating its Bitcoin supply through mining since the cryptocurrency was trading at around $5,000. Druk Holding and Investments (DHI), the investment arm of the Bhutanese government, confirmed that it has been ramping up its Bitcoin stockpile through mining for a few years now, according to a local news article.

The news came to light after the bankruptcy filings of BlockFi and Celsius Network, which were reported to have been lenders to DHI. BlockFi even accused DHI of defaulting on its $30 million loan. However, DHI CEO Ujjwal Deep Dahal said his company has settled all of its obligations with BlockFi.

DHI officials clarified that the loan was meant for investments, while the mining operations did not lose money, as the mined assets were sold. They also stated that the company is not involved in the trading and selling of digital assets and only provisioned a small amount for Ethereum, implying that Bitcoin is its main focus.

Bhutan, like Paraguay, is a haven for mining because it derives its energy from 100% renewable sources, with hydro sources contributing to lower electricity costs. However, the exact reasons why Bhutan kept its Bitcoin accumulation a secret couldn't be determined. The government emphasized that its push for Bitcoin mining is due to economic reasons rather than a FOMO on the technology, as it places great importance on technology to push its economic agenda.

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