Celsius

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Bitcoin

Bhutan, a secluded Himalayan kingdom, has surreptitiously built one of the world's largest state-owned bitcoin mining operations. Forbes, using satellite imagery, recently revealed the hidden locations of these facilities. Bhutan's venture into cryptocurrency began under King Jigme Khesar Namgyel Wangchuck's reign, aiming to avert an economic crisis. This transformation involved allocating land, funds, and energy towards these secretive operations, according to <a href="https://www.forbes.com/sites/iainmartin/2023/11/22/bhutan-secret-bitcoin-mine-locations/?sh=20ff1fb24a4e">forbes</a>. 
The Bhutanese government initially remained silent about the extent and locations of these facilities. However, the exposure of their multi-million-dollar crypto portfolio through the bankruptcies of BlockFi and Celsius sparked a response. Forbes has identified four mines using satellite imagery and insider information, revealing large rectangular mining units and high-capacity power lines from hydroelectric plants. 
These mines are strategically placed: one near Dochula Pass, another in Trongsa, the ancestral seat of the ruling dynasty, a third in Dagana district near a middle school, and the largest on the site of the failed "Education City" project. This project, intended to become an international educational hub, was abandoned due to scandals and mismanagement, leaving behind infrastructure ideal for bitcoin mining. 
Bhutan's sovereign investment arm, Druk Holdings &amp; Investment (DHI), confirmed the existence of these mines but withheld specific details. The initiative was a strategic move amidst dwindling tourism revenues and hydropower export profits due to the Covid pandemic. The country's increased investment in bitcoin mining, initiated when <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">bitcoin's price</a> was much lower, has been both a financial venture and a power-intensive undertaking, leading to a significant increase in industrial power usage. 
Despite the kingdom's commitment to prioritizing domestic power supply, these mining operations have necessitated a massive spike in energy imports, costing millions. Additionally, Bhutan has partnered with <a href="https://ultramining.com/news/en/v-singapure-projdet-blockchain-fest-2023-2/">Singapore</a>'s <a href="https://ultramining.com/news/en/bitdeer-pioneers-crypto-mining-expansion-with-norway-and-bhutan-data-centers/">Bitdeer</a> for an even larger crypto mining operation, expected to consume more energy than the rest of the country. 
While Bhutan's foray into digital currency presents an innovative solution to its economic challenges, it also raises questions about the long-term impact on the country's power resources and financial stability. The government's secretive approach and the strategic use of existing infrastructure highlight a complex interplay between innovation, economic necessity, and environmental considerations.

Bhutan’s Secret Bitcoin Operation: A Crypto Shangri-La Unveiled

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