Bhutan Surpasses El Salvador as a Major Bitcoin Holder in South Asia
Summary
Bhutan has emerged as the largest Bitcoin holder in South Asia, possessing 13,029 BTC valued at approximately $758 million. This achievement surpasses El Salvador’s holdings of 5,875 BTC valued at $331 million. Bhutan’s Bitcoin mining operations are significantly powered by hydroelectric energy, facilitated by its investment arm, Druk Holdings and Investments (DHI), and supported by a partnership with Bitdeer for expanded mining capabilities.
Recent analytics reveal that Bhutan has surpassed El Salvador as a significant holder of Bitcoin in South Asia. According to Arkham Intelligence’s data, Bhutan possesses 13,029 Bitcoin, which translates to an estimated value of $758 million, thus becoming the largest Bitcoin holder in the region, eclipsing El Salvador’s holdings of 5,875 BTC valued at $331 million. Central to Bhutan’s Bitcoin accumulation is its investment arm, Druk Holdings and Investments (DHI), which has capitalized on the nation’s extensive hydroelectric resources for Bitcoin mining. Arkham Intelligence corroborated these claims through a synthesis of on-chain data and satellite imagery, specifically identifying mining operations located at the site of Bhutan’s erstwhile Education City project. In addition to Bitcoin, DHI maintains a diverse cryptocurrency portfolio, including 656 ETH worth approximately $1.5 million, alongside lesser amounts of BNB and Polygon. Notably, Bhutan’s Bitcoin reserves represent approximately one-quarter of the country’s projected GDP of $3 billion by the end of 2024. Bitcoin mining commenced in Bhutan in April 2019, during a period when Bitcoin was valued around $5,000. Notably, in May 2023, DHI formed a partnership with Bitdeer to enhance its carbon-neutral mining initiative, aiming to increase its mining capacity to 600 megawatts by mid-2025. Conversely, El Salvador’s Bitcoin acquisition began in September 2021 at a substantially higher price point of around $51,700. While El Salvador has focused on utilizing geothermal energy from its volcanoes for mining, it has not achieved the same level of Bitcoin holdings as Bhutan. The predominant Bitcoin mining facility in Bhutan is situated on a site once earmarked for a $1 billion government venture termed “Education City,” which ultimately failed due to mismanagement and scandals. Although the Bitcoin mine is concealed within mountainous terrain, its infrastructure is detectable through transformers and power lines, with historical images indicating construction began in December 2021. Despite this significant development in state-owned mining, the Bhutanese government remains tight-lipped regarding cryptocurrency activities, with DHI reluctant to release detailed financial disclosures related to its Bitcoin mining pursuits. Bhutan’s strategic engagement with Bitcoin mining emerged as a proactive response to economic strains stemming from the COVID-19 pandemic, with a noteworthy escalation in power consumption by the Bitcoin sector noted in 2022, alongside heightened imports of mining chips. Additionally, Bhutan has entered into a collaboration with the Singaporean Bitcoin mining organization Bitdeer to develop a comprehensive 600 MW facility in the town of Gedu, which potentially eclipses the current state-owned mining operations.
The increasing significance of cryptocurrency within national economies has resulted in unprecedented changes in financial landscapes, particularly as countries explore the potential of digital currencies. Bhutan’s proactive strategy in Bitcoin mining emerges amidst the global trend towards digital assets, underscoring the importance of renewable energy sources in sustaining such ventures. With its abundant hydroelectric power capabilities, Bhutan stands out as a notable player in the Bitcoin landscape, particularly in South Asia, where other countries, such as El Salvador, have sought to establish a foothold in cryptocurrency adoption and mining.
In summary, Bhutan’s ascendance as South Asia’s primary Bitcoin holder, outpacing El Salvador, underscores the potential of utilizing renewable energy for cryptocurrency mining. With the support of DHI and extensive hydroelectric resources, Bhutan has strategically positioned itself within the digital currency realm, reflecting a broader global trend toward cryptocurrency adoption. Moreover, the partnership with Bitdeer signifies an ambitious plan for scaling up operations. Bhutan’s approach offers insights into how countries can leverage their unique resources to engage with the evolving landscape of digital currencies.
Original Source: cryptonews.com
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