Digging Bitcoin on the Himalayas is an extraordinary path for the country's modernization transformation

Cailian News Agency, June 12th (Editor Shi Zhengcheng)Utilize abundant natural resources and introduce foreign investment to cooperate in the construction of Bitcoin mines.

According to the contract signed between Druk Investment Holdings (DHI), a state-owned investment company in Bhutan, and Bitdeer, a NASDAQ listed company,Both parties will build a Bitcoin mine that consumes 600 megawatts of electricity. Bitdeer will be responsible for raising $500 million from global investors to build this project.

Determination is evident

According to the project plan, the first batch of 100 megawatt mines will be put into use in September of this year, and an additional 500 megawatt mines will be arranged to be launched in the next three years. The green and low-cost hydropower resources in Bhutan are the core competitiveness of this project. The power station will supply electricity to the mining site at a long-term contract price.

It is worth mentioning that,Just 100 megawatts makes this mine the largest electricity user in Bhutan. In the future, when all 600 megawatts are put online, the electricity consumption will be higher than the rest of Bhutan combined.According to data from Bhutan Energy Company, the country's recorded electricity consumption capacity is less than 500 megawatts.

Hydropower is also a pillar industry in Bhutan, with a current installed capacity of 2400 megawatts. In the summer, most of the electricity will be exported to India, and in the winter, when renewable energy cannot generate electricity, electricity will be imported to meet demand. The country's power generation capacity will continue to rise in the future, with a 118 megawatt power station connecting to the grid within the year and a 1020 megawatt major project going online in October next year.

Due to the seasonal nature of renewable energy, Bhutan's Bitcoin mines also have similar arrangements. Priority will be given to ensuring residents' demand for electricity in winter, and mining sites will be closed if necessary.

Although Bhutan's shareholding in the joint venture mining plant is not high, this agreement can bring them stable US dollar income (selling electricity), as well as a tax and profit sharing system.

Of course, Bhutan has also experienced the wildness of the Cryptocurrency industry. BlockFi, the previously bankrupt Cryptocurrency exchange, also filed a lawsuit with DHI at the beginning of this year, claiming that Bhutan's state-owned enterprises borrowed USD30 million from it. Even after the exchange cleared 1888 bitcoins, more than USD800000 remained unpaid.

Previously, another bankrupt Cryptocurrency exchange, Celsius, disclosed that Bhutan's state-owned enterprises are "tens of millions of dollars" level customers.

DHI responded by stating that the dispute with BlockFi has been resolved and that they actually entered the market in 2019 when they entered Bitcoin at $5000. DHI is also very aware of the pitfalls of the Cryptocurrency industry, so it decided to do a good job of what it can control, and then entrust professional things to partners like Bitdeer.

Bhutan's ambition is also reflected in import and export data,In 2022, the country imported a total of about 1 billion RMB worth of chips, a three fold increase from the previous year, and is also the country's most expensive imported project.

(Source: Government of Bhutan)

A small kingdom has big technological dreams

In response to the reasons for doing so, DHI's CEO UjjwalDeepDahal stated that Bhutan faces geographical limitations and limited connectivity to the outside world, but the country has green and relatively affordable energy that can be used to invest in digital assets and build a more sustainable economy.By building a Bitcoin mine, Bhutan can join the rapidly changing technological field and prepare its citizens to participate in the modern global economy.

Of course, there are also economic factors that have to be mentioned behind Bhutan's decisions.

The population of Bhutan is only about 800000 people, and official data shows that last year, approximately 12.6% of people lived below the poverty line, and the youth unemployment rate also reached 29%. As a pillar of the tourism industry in the country, the most optimistic expectation is that it will not return to pre pandemic levels until 2025 due to the adjustment of the "tourist tax" policy.

Like many Middle Eastern oil producing countries, Bhutan is also trying to diversify its sources of income. This country is not only watching blockchain opportunities, but also paying attention to themArtificial intelligence, robotics, and biotechnology industriesAnd actively invest in the next generation - students over the age of 8 should start learning programming.