Bhutan Has Been Secretly Mining Bitcoin for Years

Druk Holding and Investments (DHI), Bhutan's sole government-owned holding company, has confirmed that they have been mining Bitcoin for multiple years as a component of its diversified investment portfolio.

The company stated that it began devoting resources to Bitcoin mining when the price was around $5,000.

DHI officials have assured interested parties that the risks associated with Bitcoin’s price have been reduced since the company is not directly involved in buying and selling the asset. Additionally, DHI has pointed out that the returns from selling Bitcoin are used to cover the costs of the mining operation.

DHI stated that its investment in Bitcoin mining is a strategic decision, rather than being driven by the fear of missing out on the technology. In line with this strategy, DHI is building a team of Bitcoin and cryptocurrency experts while leveraging the advantages of regulated cryptocurrency exchanges across the globe.

Earlier in April, it was revealed that Bhutan was secretly investing millions in Bitcoin and other digital assets in the wake of bankruptcies from cryptocurrency lenders BlockFi and Celsius.

DHI's CEO Druk CEO Ujjwal Deep Dahal said that the loans obtained from BlockFi and Celsius were utilized to support other investments. He further clarified that the returns from their Bitcoin mining operation had compensated for any losses incurred in their digital asset investments.

Bhutan's Bitcoin mining operation is powered by the kingdom's renewable energy sources, which are derived from hydroelectric projects. The country generates almost all of its electricity from renewable sources, resulting in a surplus of power making it an optimal location for Bitcoin mining.