In a remarkable collaboration, Nasdaq-listed mining company Bitdeer Technologies Group and Bhutan’s sovereign investment arm Druk Holding and Investments (DHI) are set to create eco-friendly and carbon-free digital asset mining operations in the Kingdom of Bhutan. A closed-end fund with an estimated value of $500 million will be launched, aiming to attract investments from around the globe, with fundraising efforts slated to begin at the end of May.
Bitdeer’s Chairman Jihan Wu shared his enthusiasm about partnering with DHI, projecting a promising future for the utilization of Bhutan’s zero-emission energy in support of blockchain technologies. The collaboration aims to establish a groundbreaking universal store of value and develop international stakeholder networks that will contribute to the advancement of Bhutan’s tech sector. However, one might wonder if such a promising venture might face challenges or drawbacks in the long run.
Ujjwal Deep Dahal, the CEO of DHI, also showed great enthusiasm for the partnership with Bitdeer, adding that the project aligns with DHI’s mission to enhance the lives of Bhutanese people. The initiative is expected to generate employment opportunities in various fields, such as engineering, project management, and supervisory and supportive roles, ultimately leading towards a more sustainable domestic economy. On the other hand, skeptics might argue that despite potential job opportunities, dependence on a singular sector could hamper long-term economic growth.
Interestingly, the Kingdom of Bhutan had been quietly investing millions in cryptocurrencies through DHI, without public disclosure. This secret investment strategy was unearthed during the Celsius and BlockFi bankruptcy process. Upon further digging, it was revealed that the Himalayan kingdom had started mining Bitcoin using hydropower as early as April 2019, when the BTC price was around $5,000.
The partnership between Bitdeer and DHI carries both potential benefits and concerns. While stimulating economic growth, generating revenue in foreign currency for the local community and the nation, and potentially transforming the tech sector, it also raises questions about transparency and the sustainability of concentrating efforts in one industry. Nevertheless, the initiative’s eco-friendly and carbon-free approach to digital asset mining is undoubtedly an essential step towards a greener future in the blockchain world. Time will tell whether this ambitious project can fulfill its potential and harness Bhutan’s resources for the greater good, or if it will face unforeseen challenges along the way.