Bhutan's Secret Expansion in Bitcoin Mining Revealed Through Satellite Images

Uncover Bhutan's covert advancement in Bitcoin mining, as satellite images and insider reports unveil multiple hidden facilities and government-backed investments.

ead on to explore how this Himalayan kingdom is navigating the complex world of cryptocurrency.

Multiple Cryptocurrency Mining Facilities Identified Across the Kingdom

Located in the Himalayas, the small Buddhist kingdom of Bhutan appears to have been secretly advancing its Bitcoin (BTC) mining operations, as reported by Forbes on the 22nd.

This discovery was made through analysis of satellite images from sources like Planet Labs and Google Earth, coupled with information from insiders.

Forbes has identified four locations presumed to be cryptocurrency mining facilities.

These sites include the area near Dochula Pass, known for its 108 stupas, central Bhutan’s Trongsa, southern Daga, and along the national highway between Punakha and Thimphu - Bhutan's first paved road.

Satellite imagery revealed rectangular mining units, data center cooling systems, and high-capacity power lines and transformers stretching from Bhutanese hydropower plants to the mining facilities.

These facilities are strategically located in areas that are camouflaged by trees and other natural features to remain inconspicuous from the ground.

The largest of these facilities is located along the national highway. According to past satellite images, construction began around December 2021.

Around the same time, Bhutan's Ministry of Finance’s customs data indicates the import of 'processing equipment' worth approximately $193 million from cryptocurrency mining hardware companies.

Though it's already known from past reports that Bhutan has been involved in cryptocurrency investments and mining, the Bhutanese government has not publicly disclosed the locations of these mining facilities.

In April this year, it was revealed that Druk Holding & Investments (DHI), a government-backed investment fund in Bhutan, has been investing in cryptocurrencies.

They held an account with the now-defunct cryptocurrency lending company Celsius, engaging in numerous deposits, withdrawals, and loans of Bitcoin, Ethereum, and USDT between April and June 2022, with around 16.11 million dollars deposited in the account.

Bhutan Government-Backed Fund Partners with Bitdeer for Mining Expansion

DHI has partnered with Nasdaq-listed cryptocurrency mining company Bitdeer to construct new mining facilities by the third quarter of 2024.

The facility being developed by Bitdeer is located in the southern town of Geddu, separate from the four mentioned earlier, and it might become their largest site.

In August, Bitdeer announced the operation of 100 megawatts of power at this location.

As of July, 11,000 mining machines were already operational, with an additional 15,000 machines ordered.

In May, DHI stated that the mining operations were profitable, and while they typically sell the mined Bitcoin, they are also considering long-term holdings, especially in anticipation of a potential price increase following the 2024 halving event.

Bhutan's Strategic Move

DHI previously mentioned that the goal of investing in cryptocurrency is to “embrace technology and reap its benefits.”

They aim to participate in rapidly evolving technology to build a more sustainable Bhutan.

Often referred to as "the Last Shangri-La," Bhutan is known for ranking 8th in the United Nations' World Happiness Report in 2013.

However, the country has recently been facing economic challenges, including rising youth unemployment and an outflow of people seeking better jobs and wages overseas.

According to the local newspaper Kuensel, Bhutan's minimum wage is merely about $45 per month, with around 12% of the population living below the poverty line.

Furthermore, the COVID-19 pandemic has led to a decrease in tourism revenue. As a result, Bhutanese government officials reportedly began serious discussions with Bitcoin mining businesses during 2020.