Bhutan, a small country in South Asia, has invested tens of millions of dollars in cryptocurrencies from lenders BlockFi and Celsius, which are now bankrupt. The country has also started mining Bitcoin (BTC) using its hydroelectric network since the price of BTC returned to $5,000 in 2019, according to recent revelations.
Bhutan believes in Bitcoin (BTC)
The Kingdom of Bhutan, a small country in South Asia located east of the Himalayan range, seems confident about the future of Bitcoin (BTC). Recently, Forbes revealed that the kingdom, which nevertheless prioritizes national well-being over technological advances and the growth of its GDP, had invested tens of millions of dollars in cryptocurrencies from lenders – now bankrupt – BlockFi and Celsius.
And we just learned that Bhutan is mining Bitcoin (BTC) since the price of the king of cryptocurrencies touched 5,000 dollars for the second time, in 2019. The information came out in the local newspaper The Bhutanese, which tells us that the kingdom mines Bitcoin thanks to its hydroelectric network, whose activities represent 30% of its GDP.
According to Ujjwal Deep Dahal, the CEO of Druk Holding and Investments (DHI), the country’s 100% government-owned financial arm responsible for investing in cryptocurrencies, part of the revenue from BTC mining is used to finance operational costs, and part is kept for speculative purposes.
Without revealing the scale of the facilities, the CEO also clarified that the country’s hydroelectric network makes it possible to practice Bitcoin mining economically, which offered the possibility of investing in quality equipment thanks to the gains generated in order to optimize production.
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A long-term investment
The Druk Holding & Investments portfolio is currently managed by a team of professional investors responsible for developing a diversified portfolio, and this by favoring technological or developing sectors, such as that of cryptocurrencies :
“Our portfolio contains investments in various asset classes that provide exposure to traditional sectors and industries that drive the modern economy. This is in particular […] mining and investing in digital assets. »
Why Bhutan wanted to keep its cryptocurrency activities secret remains unknown. His investments in cryptocurrencies have only been revealed through legal documents released in BlockFi and Celsius bankruptcy proceedings.
The financial arm of Bhutan would thus have obtained the equivalent of $65 million in cryptocurrency loans and would have deposited $18 million in assets with the 2 companies. According to the documents, Bhutan would have transferred Bitcoin, Ether and USDT in particularamong others.
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Source: The Bhutanese
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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