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James Carter

May 4, 2023

Bhutan Reveals Secret Bitcoin Mining-Here’s How

DHL, which is the business arm of the Royal Government of Bhutan, is said to have entered the Bitcoin mining market by purchasing Bitcoin at a price of $5,000 per coin, as stated in a recent story published by Forbes.

Bhutan Reveals Secret Bitcoin Mining

It has been found that Druk Holding and Investments (DHI), which had not previously declared its early engagement in Bitcoin mining, has been doing so. This information was provided by Ujjwal Deep Dahal, the CEO of DHL.

Dahal noted that the company’s primary objective is to mine digital assets, with a special concentration on BTC, within the borders of Bhutan.

CEO Ujjwal Deep Dahal Reveals Bhutan Exposure to Bitcoin

During an interview with The Bhutanese, Dahal disclosed that DHI concentrated its mining efforts on more secure and well-known cryptocurrencies, such as Bitcoin and Ethereum.

DHI began mining when Bitcoin had a value of $5,000 with the goal of acquiring Bitcoin as its primary asset.

Dahal has verified that the loans from BlockFi and Celsius were utilized for investments and that they have been repaid in full. Amazingly, DHI has not suffered any losses as a result of its investments in digital assets. This success can be attributed to a number of different variables.

To begin, the exploitation of green energy in Bhutan results in cheaper mining costs as compared to other countries.

DHI has been able to surpass US miners, who are challenged by high electricity costs, thanks to this competitive advantage.

The hydroelectric projects in Bhutan provide DHI’s mining operations with a source of electricity that is both clean and inexpensive. As a result of the high mountains’ ability to provide natural air replacement, DHI’s carbon impact is reduced.

Also Read:  Iceland’s Energy Service Cuts Crypto Mining Power

Due to its conservative financial approach, DHI does not make deposits with crypto enterprises that engage in lending or trading, protecting it against the possibility of business failures in the sector.

DHI adheres to rigorous Know Your Customer rules and only works with trustworthy exchanges.

The sale of Bitcoin helps fund DHI’s operating costs, which include those for power and mining hardware. Additionally, it holds some BTC in preparation for a price increase following the halving event in 2024.

DHI has emerged as a formidable competitor in the crypto-mining industry by incorporating sustainable practices and forward-thinking financial strategies.

DHI Secures Strategic Partnership

It is important to note that DHI has collaborated with Bitdeer Technologies Group in order to improve its digital asset mining activities.

In the context of this business collaboration, DHI will play the role of the limited partner, while Bitdeer will act in the capacity of the general partner.

The equities of both parties can currently be found exchanged on NASDAQ.

Bitdeer, a company that develops mining technology for cryptocurrencies, is working with DHI to advance carbon-free and sustainable digital asset mining in Bhutan.

The partnership’s intention to launch a closed-end fund with a capitalization of $500 million was disclosed on May 3.

At the end of this month, the companies will initiate their efforts to raise capital by soliciting investments from overseas parties.

The fund intends to strengthen DHI’s mining, investment, and blockchain operations by capitalizing on Bitdeer’s expertise in these areas.

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