Druk Holding & Investments, the investment arm of the Royal Government of Bhutan, has joined forces with Bitdeer Technologies Group, a Nasdaq-listed company, to launch a $500 million fund that will support bitcoin mining activities in Bhutan. The country has been secretly producing BTC since 2017 using its vast amount of hydropower, and the government is determined to establish the region as a leading factor in the bitcoin mining scene. The partnership between Druk Holding & Investments and Bitdeer will raise funds to develop green crypto mining in the area by utilizing Bhutan’s hydroelectricity resources.
The fund is expected to target institutional investors at the end of May, with Druk Holding & Investments and Bitdeer participating as financial backers. Bhutan’s investment arm CEO, Ujjwal Deep Dahal, believes that entering the BTC mining sector is the least risky way for the country to join the industry. He stated that it is essential to look at assets that are low volume, high value, or digital assets and position the country competitively globally to build its economy.
Bitdeer, a crypto mining giant based in Singapore, aims to establish a 100-megawatt operation in Bhutan, with construction set to begin during the second quarter of the year and be completed by September. The country has displayed intentions to launch a digital version of its national currency, with Ripple announcing its partnership with Bhutan’s central bank, the Royal Monetary Authority, to pilot a central bank digital currency (CBDC) in phases.
The bank expects the potential move to improve cross-border payments and expand financial inclusion. Ripple said that it would take into account Bhutan’s green policies, explaining that the CBDC solution would match its principles. The mining plans and the launch of a digital version of its national currency will help Bhutan establish itself as a key player in the bitcoin mining industry.