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Bhutan Ventures the Crypto Mining World with Launch of US$500 Million Fund in the Himalayas

The investment arm of Bhutan, DHI, and Bitdeer Technologies Group, a Nasdaq-listed company, recently announced their plan to launch a fund with a value of up to US$500 million (S$666 million) to develop eco-friendly crypto mining in the Himalayan kingdom.

The Fundraising Campaign 

The fundraising campaign is set to commence at the end of May and will target institutional investors. The primary objective is to establish carbon-free digital mining that will make use of Bhutan’s abundant hydroelectric power. In a joint statement released on Wednesday, the companies expressed their unwavering commitment to promoting sustainable and environmentally friendly practices in the cryptocurrency industry. 

As per the CEO of Druk Holding and Investments(DHI), Mr. Ujjwal Deep Dahal, mining is the most secure way for Bhutan to explore crypto opportunities. Currently, the country is prioritizing Bitcoin. Mr. Dahal stressed the significance of investing in low-volume and high-value assets to establish Bhutan’s competitive position in the global market and boost the economy in the long run.

About the Crypto Mining Operation

As per a recent regulatory filing, Bitdeer is in the process of establishing a 100-megawatt operation in Bhutan. The construction of this operation is scheduled to begin in the second quarter and is anticipated to be completed by September. In a recent interview, Bitdeer’s CEO, Matt Linghui Kong, revealed that his company and DHI will be jointly investing in the new fund. 

Previously, DHI had once embarked on a crypto mining endeavor with a “sandbox” methodology during the time when Bitcoin’s worth was approximately US$5,000, but it didn’t progress much further.

The Bhutan Economy

Bhutan, a nation nestled between China and India and known for its lush forests, has a population of around 777,000. The country’s economy has long relied on hydropower revenues, but it has been seeking to diversify in recent years. 

Druk Holding and Investments (DHI), the commercial arm of the Royal Government of Bhutan, has been overseeing the government’s investments in a variety of sectors, including technology, energy, real estate, stocks, and bonds. Now, DHI is expanding into the realm of cryptocurrency mining and investment as part of its forward-thinking strategy.