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First Post
5 days ago
- Business
- First Post
Bhutan's Bitcoin boom: Himalayan nation amasses $1.3 bn crypto fortune
Bhutan proudly boasts bitcoins worth $1.3 billion, an amount totalling 40 per cent of the country's gross domestic product read more Bhutan, the peace-loving Himalayan nation, is generally associated with picturesque landscapes and a carbon-negative footprint. However, the South Asian nation now proudly boasts bitcoins worth $1.3 billion, an amount totalling 40 per cent of the country's gross domestic product. Cryptocurrency platform Arkham reports that this is the third-largest such stockpile held by governments around the world. When did Bhutan's crypto journey begin? The journey began in 2020 when Bhutan, where cheap electricity is abundant, began discreetly establishing bitcoin mines. The secluded Buddhist nation was eyeing to harness its hydropower. Crypto experts note that larger nations aim to lead in cryptocurrencies, akin to New York and London's dominance in traditional finance, while smaller countries view it as an economic opportunity. STORY CONTINUES BELOW THIS AD For instance, in 2021, El Salvador made a bold move by adopting bitcoin as legal tender, though its use remained limited. Challenges and risks for Bhutan Bhutan may have long dominated the 'national happiness index,' but the Land of the Thunder Dragon—named for its dramatic thunderstorms—has faced economic challenges, relying heavily on hydropower, agriculture, and tourism. The Covid-19 pandemic severely impacted tourism, and over the past five years, 10 per cent of its population has emigrated for better job prospects. It's rare for a sovereign nation to operate its own crypto-mining operations, but Bhutan's access to cheap electricity makes it ideal. Bitcoin mining Bitcoin mining involves solving increasingly complex mathematical puzzles to unlock new coins. While early enthusiasts mined using home computers, modern large-scale operations demand servers consuming vast energy. Miners have flocked to places like Kazakhstan for affordable power. Wall Street quoted Ujjwal Deep Dahal, chief executive of Bhutan's sovereign-wealth fund, as saying that Bitcoin acts as a 'battery' for the country. Bitcoin 'acts as a battery for us, using up excess summer power,' he said. Prime Minister Tshering Tobgay stated that Bhutan's bitcoin reserves have more than offset the decline in hydropower exports, which usually account for about 40 per cent of the government's budget. The increased electricity consumption by bitcoin mines has reduced hydropower exports. In 2023, the government sold $100 million of its bitcoin holdings to fund civil servant pay raises for two years. 'That increase has been financed totally with bitcoins,' Tobgay said. If you just sold electricity, 'you wouldn't get anywhere near the amount that's required.' STORY CONTINUES BELOW THIS AD
Hindustan Times
6 days ago
- Business
- Hindustan Times
A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off.
THIMPHU, Bhutan—The tiny Himalayan kingdom of Bhutan is best known for its stunning landscapes and national happiness index . Lately it has earned a new reputation: crypto pioneer. Bhutan now boasts a stash of bitcoins worth $1.3 billion, or roughly 40% of the country's gross domestic product, according to cryptocurrency platform Arkham. It is the third-largest such stockpile held by governments, according to Arkham. Unlike the U.S. or U.K, which also have vast crypto holdings, Bhutan's fortune wasn't seized from criminal activity or purchased in the open market. Instead, the secluded Buddhist nation began quietly setting up bitcoin mines in 2020, harnessing its abundant hydropower to dig for digital gold. 'For Bhutan, it was quite obvious in a lot of ways,' said Ujjwal Deep Dahal, chief executive of Bhutan's sovereign-wealth fund, Druk Holding and Investments, which implemented the project. 'We kind of look at bitcoin as a store of value, similar to gold.' Many countries are studying ways to inject cryptocurrency into their financial systems. In March, President Trump signed an executive order to create a national stockpile of bitcoin and other digital currencies. Crypto experts say larger countries want to stake an early claim as a leader in cryptocurrencies, similar to how New York and London dominate traditional finance. Smaller countries also see it as a potential boost. One of the boldest experiments came in 2021, when El Salvador adopted bitcoin as legal tender, although use of the currency didn't take off. Ujjwal Deep Dahal, CEO of Bhutan's sovereign-wealth fund, was closely involved in setting up bitcoin mines. Bhutan is a secluded Buddhist nation. Bhutan's bet on bitcoin, however, carries risk. A fall in bitcoin's price could deal a heavy blow to the government's coffers. Sandwiched between China and India, Bhutan, population 780,000, is an unlikely trailblazer in cryptocurrency. Old traditions still dominate: Government officials wear traditional dress, which for men entails a knee-length robe tied at the waist. The capital city of Thimphu has no traffic lights. Archery competitions are a popular weekend pastime. The country's first credit-card transaction occurred in 2010. Bhutan has gauged economic progress with a 'national happiness index.' But the Land of the Thunder Dragon—named for the dramatic thunderstorms that sweep through its valleys—has struggled to expand its economy beyond hydropower, agriculture and tourism. Its economy has struggled since the Covid-19 pandemic choked off tourism. Over the past five years, 10% of its population has emigrated in search of better jobs. 'We are poor,' said Dr. Lotay Tshering, a urologist who was prime minister from 2018 to 2023. 'Many people refer to Bhutan and Bhutanese as the happiest country in the world. We are not.' When Jigme Khesar Namgyel Wangchuck, the 45-year-old king who is nicknamed the 'Asian Elvis' for his good looks, asked officials for ideas on how to use technology to jump-start the economy, the idea for bitcoin mining emerged. It is unusual for a sovereign country to run its own crypto-mining operations. But Bhutan already had the key ingredient for profitable mining: cheap electricity. To unlock new bitcoin, computers must solve mathematical puzzles that become increasingly complex over time. In bitcoin's early days, enthusiasts often generated new coins using their home computers, but today's large-scale mining operations require servers guzzling vast amounts of power. Miners have set up shop in far-flung places like Kazakhstan to take advantage of low electricity prices. Bitcoin 'acts as a battery for us, using up excess summer power,' said Dahal, the CEO of the sovereign-wealth fund, who studied blockchain technology for years as a personal hobby. The effort got under way in 2019 under the fund's research and development wing, said Dahal, who started by reading material online and watching YouTube videos on how to mine bitcoin. The team eventually imported two computers to tinker on, which overheated the office one night and led to frantic calls from security at 3 a.m. However, when the first mine broke ground in late 2020, Bhutan had closed its borders due to the pandemic, preventing anyone from flying in to help set up operations. Dahal and four employees configured the machines themselves, spending months sleeping on-site. The first location, near Dochula Pass, a snowy mountain pass, was chosen for its cool temperatures and proximity to transmission lines, according to officials. Experts in Singapore and Malaysia advised over the phone. Hydropower plays an important part in Bhutan's economy. 'You don't want to waste a day of mining, once you have the machines,' Dahal said. Soon, the effort was successful. By 2022, Bhutan had broken ground on all four of its government-owned mines, officials said. Moreover, it came just ahead of a run-up in the price of bitcoin, which has gone from under $10,000 in 2020 to around $100,000 today. Prime Minister Tshering Tobgay said the bitcoin haul has more than made up for a drop in hydropower exports, which typically fund about 40% of the government budget. Hydropower exports have fallen as bitcoin mines use up more electricity. In 2023, the government decided to sell off $100 million of its cache to finance pay rises for civil servants for two years. 'That increase has been financed totally with bitcoins,' Tobgay said. If you just sold electricity, 'you wouldn't get anywhere near the amount that's required.' Bhutan's Prime Minister Tshering Tobgay says bitcoin mining has funded pay rises for civil servants. Bhutan is seeking other ways to profit from bitcoin. In 2023, Singapore-based mining company Bitdeer Technologies announced it was joining forces with Bhutan to build mines. The deal gives Bitdeer, which financed the construction of two mines, all the bitcoin. The company in turn pays Bhutan for electricity in U.S. dollars, which has boosted the country's foreign-currency reserves. The government has stayed mum about most of the locations and the exact number of its own mines, which are controlled by a company called Green Digital. At least six mines are operational, according to officials and satellite images from Planet Labs. Dahal said the secrecy is to prevent 'misuse or hacking or anything else.' The project, he added, has complied with all Bhutanese regulations. Behind closed doors, some bureaucrats grumble about the opaque nature of the project and wonder how the money will ultimately be spent. Many Bhutanese people had no inkling about Bhutan's bitcoin stockpile until local news covered the pay bump for government employees. Bhutan's economy relies on tourism, so the Covid-19 pandemic dealt a significant blow to the country. Chencho Tshering, a 25-year-old analyst at the national land commission, said he couldn't believe at first that Bhutan's struggling economy could generate enough funds to give him a 65% raise. 'I wasn't aware of bitcoin at all, but it is a diversification of our economy,' he said. 'It's smart.' Now, the government plans to hold on to the bitcoin reserves for the long haul, officials said, instead of liquidating to fund government spending. While it doesn't plan to add further mines, it expects to update the existing ones. Bhutan is experimenting with other ways to weave cryptocurrency into daily life. Last month, the government launched a crypto-payment system that allows tourists to pay with more than 100 cryptocurrencies for flights, hotels and visas. Dr. Tshering, the former prime minister who now serves as governor of the special administrative region that oversees the bitcoin mines, said cryptocurrency will be integrated into every facet of that region, called Gelephu Mindfulness City, including its strategic reserves. Cryptocurrencies will likely be accepted within the city, which is also developing its own digital currency. 'It's basically the salt in your curry,' Dr. Tshering said, referring to crypto. 'It will touch every element in the curry.' Women wait at a checkpoint in Bhutan. Write to Shan Li at A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off. A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off. A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off. A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off. A Remote Himalayan Kingdom Bet Big on Bitcoin Mining. So Far, It Has Paid Off.
Mint
6 days ago
- Business
- Mint
A remote Himalayan kingdom bet big on bitcoin mining. So far, it has paid off.
THIMPHU, Bhutan—The tiny Himalayan kingdom of Bhutan is best known for its stunning landscapes and national happiness index. Lately it has earned a new reputation: crypto pioneer. Bhutan now boasts a stash of bitcoins worth $1.3 billion, or roughly 40% of the country's gross domestic product, according to cryptocurrency platform Arkham. It is the third-largest such stockpile held by governments, according to Arkham. Unlike the U.S. or U.K, which also have vast crypto holdings, Bhutan's fortune wasn't seized from criminal activity or purchased in the open market. Instead, the secluded Buddhist nation began quietly setting up bitcoin mines in 2020, harnessing its abundant hydropower to dig for digital gold. 'For Bhutan, it was quite obvious in a lot of ways," said Ujjwal Deep Dahal, chief executive of Bhutan's sovereign-wealth fund, Druk Holding and Investments, which implemented the project. 'We kind of look at bitcoin as a store of value, similar to gold." Many countries are studying ways to inject cryptocurrency into their financial systems. In March, President Trump signed an executive order to create a national stockpile of bitcoin and other digital currencies. Crypto experts say larger countries want to stake an early claim as a leader in cryptocurrencies, similar to how New York and London dominate traditional finance. Smaller countries also see it as a potential boost. One of the boldest experiments came in 2021, when El Salvador adopted bitcoin as legal tender, although use of the currency didn't take off. Bhutan's bet on bitcoin, however, carries risk. A fall in bitcoin's price could deal a heavy blow to the government's coffers. Sandwiched between China and India, Bhutan, population 780,000, is an unlikely trailblazer in cryptocurrency. Old traditions still dominate: Government officials wear traditional dress, which for men entails a knee-length robe tied at the waist. The capital city of Thimphu has no traffic lights. Archery competitions are a popular weekend pastime. The country's first credit-card transaction occurred in 2010. Bhutan has gauged economic progress with a 'national happiness index." But the Land of the Thunder Dragon—named for the dramatic thunderstorms that sweep through its valleys—has struggled to expand its economy beyond hydropower, agriculture and tourism. Its economy has struggled since the Covid-19 pandemic choked off tourism. Over the past five years, 10% of its population has emigrated in search of better jobs. 'We are poor," said Dr. Lotay Tshering, a urologist who was prime minister from 2018 to 2023. 'Many people refer to Bhutan and Bhutanese as the happiest country in the world. We are not." When Jigme Khesar Namgyel Wangchuck, the 45-year-old king who is nicknamed the 'Asian Elvis" for his good looks, asked officials for ideas on how to use technology to jump-start the economy, the idea for bitcoin mining emerged. It is unusual for a sovereign country to run its own crypto-mining operations. But Bhutan already had the key ingredient for profitable mining: cheap electricity. To unlock new bitcoin, computers must solve mathematical puzzles that become increasingly complex over time. In bitcoin's early days, enthusiasts often generated new coins using their home computers, but today's large-scale mining operations require servers guzzling vast amounts of power. Miners have set up shop in far-flung places like Kazakhstan to take advantage of low electricity prices. Bitcoin 'acts as a battery for us, using up excess summer power," said Dahal, the CEO of the sovereign-wealth fund, who studied blockchain technology for years as a personal hobby. The effort got under way in 2019 under the fund's research and development wing, said Dahal, who started by reading material online and watching YouTube videos on how to mine bitcoin. The team eventually imported two computers to tinker on, which overheated the office one night and led to frantic calls from security at 3 a.m. However, when the first mine broke ground in late 2020, Bhutan had closed its borders due to the pandemic, preventing anyone from flying in to help set up operations. Dahal and four employees configured the machines themselves, spending months sleeping on-site. The first location, near Dochula Pass, a snowy mountain pass, was chosen for its cool temperatures and proximity to transmission lines, according to officials. Experts in Singapore and Malaysia advised over the phone. 'You don't want to waste a day of mining, once you have the machines," Dahal said. Soon, the effort was successful. By 2022, Bhutan had broken ground on all four of its government-owned mines, officials said. Moreover, it came just ahead of a run-up in the price of bitcoin, which has gone from under $10,000 in 2020 to around $100,000 today. Prime Minister Tshering Tobgay said the bitcoin haul has more than made up for a drop in hydropower exports, which typically fund about 40% of the government budget. Hydropower exports have fallen as bitcoin mines use up more electricity. In 2023, the government decided to sell off $100 million of its cache to finance pay rises for civil servants for two years. 'That increase has been financed totally with bitcoins," Tobgay said. If you just sold electricity, 'you wouldn't get anywhere near the amount that's required." Bhutan is seeking other ways to profit from bitcoin. In 2023, Singapore-based mining company Bitdeer Technologies announced it was joining forces with Bhutan to build mines. The deal gives Bitdeer, which financed the construction of two mines, all the bitcoin. The company in turn pays Bhutan for electricity in U.S. dollars, which has boosted the country's foreign-currency reserves. The government has stayed mum about most of the locations and the exact number of its own mines, which are controlled by a company called Green Digital. At least six mines are operational, according to officials and satellite images from Planet Labs. Dahal said the secrecy is to prevent 'misuse or hacking or anything else." The project, he added, has complied with all Bhutanese regulations. Behind closed doors, some bureaucrats grumble about the opaque nature of the project and wonder how the money will ultimately be spent. Many Bhutanese people had no inkling about Bhutan's bitcoin stockpile until local news covered the pay bump for government employees. Chencho Tshering, a 25-year-old analyst at the national land commission, said he couldn't believe at first that Bhutan's struggling economy could generate enough funds to give him a 65% raise. 'I wasn't aware of bitcoin at all, but it is a diversification of our economy," he said. 'It's smart." Now, the government plans to hold on to the bitcoin reserves for the long haul, officials said, instead of liquidating to fund government spending. While it doesn't plan to add further mines, it expects to update the existing ones. Bhutan is experimenting with other ways to weave cryptocurrency into daily life. Last month, the government launched a crypto-payment system that allows tourists to pay with more than 100 cryptocurrencies for flights, hotels and visas. Dr. Tshering, the former prime minister who now serves as governor of the special administrative region that oversees the bitcoin mines, said cryptocurrency will be integrated into every facet of that region, called Gelephu Mindfulness City, including its strategic reserves. Cryptocurrencies will likely be accepted within the city, which is also developing its own digital currency. 'It's basically the salt in your curry," Dr. Tshering said, referring to crypto. 'It will touch every element in the curry." Write to Shan Li at
Yahoo
13-05-2025
- Business
- Yahoo
‘Size does not matter': Bhutan's tiny sovereign wealth fund banks on green energy and Bitcoin
Bhutan, the small landlocked country wedged between India and China, is perhaps best known for 'Gross National Happiness,' the alternate measure that the country claims gives a fuller understanding of economic development than GDP. But the country wants to be known for more than just spiritual tourism and Himalayan mountains. Bhutan now hopes to attract foreign investment, foster new industries, and enter the global economy. It's a steep hill to climb for the isolated Himalayan country, which has recently grappled with a brain drain problem as young Bhutanese travel abroad for new opportunities. 'Geography is a challenge for us, demography is a challenge for us,' said Ujjwal Deep Dahal, CEO of Druk Holdings and Investments (DHI), Bhutan's sovereign wealth fund. Bhutan and DHI need to 'learn to engage with the world as we move,' he added. Yet Bhutan and its sovereign wealth fund–tiny by global standards–hope to leverage the country's strengths, including cheap and widespread hydropower, which in turn can feed investments in data centers and Bitcoin mining. Key to the country's plan is the Gelephu Mindfulness City, a new zone to connect Bhutan with businesses in South and Southeast Asia. The most prominent sovereign wealth funds—like those from Norway, Saudi Arabia or Singapore—are gigantic global investors. These funds move hundreds of billions of dollars of funds, garnered from pensions, natural resources or foreign exchange reserves, to seek high returns and invest in strategic industries. DHI is smaller compared to these global giants. A lot smaller. Founded in late 2007, DHI has around $3 billion in assets under management, and owns stakes in 24 different Bhutanese companies. By comparison, Singapore's Temasek has $300 billion in assets under management, with stakes in the country's most prominent companies, like Singapore Airlines and DBS. But Dahal sees opportunity in DHI's small size. 'Size does not matter,' he said; instead, DHI can focus on 'efficiency and how we grow.' Still, he sees Temasek as a role model for DHI. 'We look at Temasek to a large extent, in terms of governance, in terms of divestments. But having said that, Bhutan's economy and Singapore's are completely different,' Dahal said. 'We need to look at running DHI in a way that's complementary to the challenges.' Bhutan calculates Gross National Happiness through a survey of 300 questions administered every few years. The most recent GNH index, released in May 2023, reported a score of 0.781 for 2022, higher than the 0.743 reported in 2010. The country's GDP per capita grew from $2,435 to $3,711 over the same period—yet experienced a steep decline in 2020, the height of the pandemic. Pessimism about the economy has meant that the country, with a population of less than 800,000, is currently going through a brain drain. Around 13,500 Bhutanese, equal to 1.6% of the country's entire population, moved to Australia in 2023. The country, which is still mostly covered in forest, has battled declining income, a lack of job opportunities, and rising youth unemployment. Tourism is one of Bhutan's main sources of income, but has yet to recover from the COVID pandemic. The country reported 145,000 tourist arrivals last year, less than half of the 315,599 arrivals recorded in 2019. The country also has a mixed view of the tourism industry, promoting a 'high-value, low-impact' tourism model to avoid stressing the country's infrastructure. DHI manages several firms that are key to the country's economy, like Bhutan Power Corporation, Bank of Bhutan, and Bhutan Telecom. And Dahal thinks DHI can be a platform to carve out a niche for Bhutan in today's AI and internet economy. For example, Dahal, who has a background in engineering and hydropower, hopes that Bhutan can be a place where green energy firms can explore 'interesting technologies,' like pump storage and hydrogen power, and test their commercial viability. 'We can quickly test it out in Bhutan, solve the problem in Bhutan and take it global or regional,' Dahal argued. He's particularly focused on hydropower, now Bhutan's major source of electricity generation. Bhutan currently has 2.5 gigawatts of current capacity, and an additional 3 gigawatts under construction. DHI's also making some more unconventional bets. Bhutan is one of the world's largest sovereign holders of Bitcoin. The country started mining the cryptocurrency back in 2019, when it was worth just under $10,000. It's now worth around $97,000 as of May 7, 2025. Bitcoin mining is normally energy intensive, but Dahal claims that Bhutan's crypto mining, due to its use of hydropower and other green energy, helps offset carbon emissions elsewhere. 'Bitcoin is a parallel to digital gold,' Dahal said, noting that the country's cryptocurrency strategy is part of a diversified approach for alternative investments. DHI, as Bhutan's investment arm, is also supporting the development of Gelephu Mindfulness City, a special administrative region that hopes to be an economic corridor to South and Southeast Asia. The City, which spans about 2,500 square kilometers, tries to combine economic growth with sustainability and holistic living, and offers space to businesses like healthcare, technology, and green energy. 'We're trying to bring an innovation strategy into DHI to build startups with global founders, academicians and innovators, and bring them together to build a startup culture and economy,' Dahal said. 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Korea Herald
11-05-2025
- Business
- Korea Herald
LS to build power grid for Bhutan smart city project
Korea's infrastructure and energy conglomerate LS Group announced Friday that it will take part in building the power grid for a planned city in Bhutan by forming a joint venture with the country's state-run city development agency. LS Group signed an agreement in Seoul earlier in the day with Bhutan's Gelephu Investment and Development Corporation to establish the joint venture LS GIDS Pte. Ltd. The joint venture will provide essential infrastructure components — such as transformers, energy storage systems and power and communication cables — to support the early development phase of the large-scale planned city project, which will span 2,500 square kilometers in Gelephu, a southern region of Bhutan near the Indian border, LS said. The signing ceremony took place at LS Group's headquarters in Yongsan, central Seoul, with LS Group Vice Chair Myung Roe-hyun, GIDC CEO Ujjwal Deep Dahal and officials from both sides in attendance. Ahead of the ceremony, GIDC officials visited LS subsidiaries — LS Cable & System and LS Electric — beginning Wednesday to explore various avenues for collaboration. 'The establishment of this joint venture with GIDC lays an important foundation for future-oriented cooperation between LS and Bhutan,' said Vice Chair Myung. 'By participating in the early stages of designing the utility grid and core infrastructure of the city, LS expects to unlock a wide range of new business opportunities in Bhutan.' Designed to become an economic hub for the region, the city will feature an international airport slated for completion by 2029. It is also expected to host data center facilities powered by Bhutan's abundant renewable energy resources, particularly hydropower, according to LS. Given the anticipated demand for a high-capacity power grid, LS plans to leverage its expertise in electrification to pursue further business opportunities in the region, including continued infrastructure support for companies entering the new city.
