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Bhutan Seeks to Raise $500 Million to Bolster Bitcoin Mining Operations: Report

Biden Administration Pushes Congress to Pass 30% Tax on Bitcoin Mining

Druk Holding & Investments has partnered with Bitdeer Technologies Group, a Nasdaq-listed company, to create a $500 million fund to support bitcoin mining in Bhutan. There are reports that the country may have been mining BTC since 2017, using its hydropower. This investment aims to establish Bhutan as a key player in the bitcoin mining industry by deploying green crypto mining through Bhutan’s hydroelectricity resources.

Bhutan Aims to Be a Leading BTC Mining Hub

The Bhutanese government is determined to make the country a leader in the bitcoin mining industry. The $500 million fund, developed through the collaboration of Druk Holding & Investments and Bitdeer, is expected to start targeting institutional investors at the end of May. Ujjwal Deep Dahal, CEO of Bhutan’s investment arm, points out that entering the BTC mining sector is the least risky way for the country to join the industry.

“It’s important for us to look at assets that are low volume, high value, or digital assets for that matter, and try to position ourselves in a way that we can be competitive globally over time to build our economy,” he added.

Bitdeer intends to build a 100-megawatt operation in Bhutan. Construction is expected to start during the second quarter of the year and be completed by September.

Bhutan Has Other Crypto Plans

Apart from its massive bitcoin mining plans, the country intends to launch a digital version of its national currency. Ripple has partnered with Bhutan’s central bank, the Royal Monetary Authority, to pilot a central bank digital currency (CBDC) in phases. The bank expects the move to improve cross-border payments and expand financial inclusion. Ripple says it will take into account Bhutan’s green policies, explaining that the CBDC solution would be a match for its principles.

“Ripple’s commitment to sustainability was important for Bhutan. The CBDC solution is carbon-neutral and, because it’s based on the public XRP Ledger, is 120,000x more energy efficient than proof-of-work blockchains.”