The Singapore-based cloud mining company Bitdeer has recently announced a partnership with Bhutan’s investment arm to raise an impressive $500 million. According to a Bloomberg report, these funds are set to be utilized in developing carbon-free crypto-mining infrastructure in the Himalayan country. This partnership has sparked enthusiastic discussions in the crypto world, as the Kingdom of Bhutan is seeking to make a splash in the sphere of digital currencies.
Ujjwal Deep Dahal, the CEO of DHI, views investing in cryptocurrencies as the “least risky way” for the nation to immerse itself into the next generation of money. He explains the nation’s perspective by stating, “It’s important for us to look at assets that are low volume, high value or digital assets for that matter, and try to position ourselves in a way that we can be competitive globally over time to build our economy.”
As reported by Сrypto.news, Bhutan has a population of around 777,000 people, and the plan is to use the funds raised to harness its hydroelectric power for the development of green cryptocurrency mining via Bitdeer’s expertise in cloud mining. This comes after Bhutan’s investment in Bitcoin (BTC) mining hardware, which accounted for approximately 5% of its GDP.
The partnership between Bhutan’s investment department and Bitdeer aims at raising $500 million with the help of potential investors. The goal is to establish a carbon-free bitcoin mining infrastructure, taking advantage of Bhutan’s hydroelectric prowess. As a result of this collaboration, a 100-megawatt crypto-mining facility is expected to be built, with completion anticipated between June and September.
However, it is essential to mention that last month, Bhutan’s sovereign investment arm, Druk Holding & Investments (DHI), suffered substantial losses due to the collapse of BlockFi and Celsius. This sobering experience should not be overlooked amidst the enthusiasm surrounding Bhutan’s partnership with Bitdeer and its aspirations in the crypto industry.
In conclusion, Bhutan’s venture into establishing a carbon-free crypto-mining infrastructure, with the aid of Bitdeer, is indeed an intriguing development on the crypto stage. While the partnership is lining up to provide considerable benefits for the small South Asian nation, it is equally important to remain aware of the potential risks and setbacks, as exemplified by the recent losses due to BlockFi and Celsius. It remains to be seen how the market will react to this collaboration and whether Bhutan will successfully establish itself as a competitive force in the world of digital currencies.