Bhutan, mining Bitcoin with hydropower energy... Promoting a 'green digital strategy' with an annual profit of 1 trillion won.

Source: TokenPost Original Title: Bhutan, Bitcoin ( BTC ) mining generates 1 trillion won in profit… Strengthening the 'digital export' strategy with excess power. Original Link: Bhutan is 'monetizing' Bitcoin(BTC) through hydropower energy, which is abundant, on a national strategic level. The country conducts export-oriented mining based on renewable energy and uses it as a source of foreign currency income and a financial aid tool. A government agency operates it directly, and the regulations are strictly controlled, focusing on special regions.

State-owned investment company directly involved in mining project

Bhutan's Bitcoin strategy is a state-led 'green digital asset' initiative. Instead of relying on traditional exports, it is generating foreign currency through 'digital exports' by utilizing excess electricity produced from hydropower. This project is led by Druk Holding & Investments, a state-owned investment company owned by the King of Bhutan, and both mining and storage are managed at the national level.

The housing is concentrated in a separate area called Gelufu Mindfulness City(GMC). The central bank only allows mining and trading participation in this area, running a separate registration and regulation system to limit indiscriminate participation by the general public.

Convert excess electricity into foreign currency

Bhutan generates most of its total electricity through hydropower and exports it to nearby countries like India. However, during seasons when the supply exceeds the demand for electricity, surplus hydropower is generated. The DHI announced that it has utilized this surplus to mine Bitcoin and contributed the profits to the government finances. In fact, there have been instances in the past two years where some civil servants' salaries were paid using cryptocurrency earnings.

The core partner is the Chinese mining specialized company Bitdeer(. Both companies announced that they would create a mining fund of up to $500 million), approximately 741.4 billion won(, to expand a carbon-free digital asset ecosystem.

Utilizing Bitcoin as a 'Digital Battery'

The concept presented by Bhutan is clear. The strategy is to secure Bitcoin through mining when there is an abundance of hydropower during the summer, and to sell Bitcoin in winter when electricity is scarce to convert it into foreign currency or cover imported electricity.

The Bhutanese government defines Bitcoin not just as a simple asset but as a 'liquidity buffer asset.' In other words, it is a way to store electricity as a digital asset without involuntary power waste and exchange it when needed.

Rigorously Controlled Regulatory Environment

Despite the risks associated with cryptocurrencies, Bhutan approaches them in a meticulously controlled manner. The central bank ) RMA ( announced that it would allow cryptocurrency operations in phases and only in specific areas. This regulation allows only corporations registered in Gelephu City to mine and trade, while access for ordinary individuals is restricted.

Moreover, it is pointed out that not all bitcoins mined at the national level are disclosed or audited, raising concerns about transparency. In fact, blockchain analytics firm Arkham) has estimated that the Bhutanese government holds approximately 12,000 to 13,000 bitcoins, and that the annual revenue is around 750 million dollars(, which is about 1.1 trillion won).

'Green Bitcoin' Framework vs Financial Risks

Bhutan has repeatedly claimed that Bitcoin mined solely with hydroelectric power contributes to reducing global greenhouse gas emissions. However, just because it is based on green energy does not mean that all risks disappear.

The price of Bitcoin is highly volatile, so linking it to national finances can lead to budget instability. Additionally, while the asset holdings of DHI can be estimated on the blockchain, they are not official audited documents, which leaves challenges in terms of transparency and management of national finances.

Can it become a sustainable national model?

Bhutan's 'Green Bitcoin Experiment' is not a temporary trend but a national strategy aimed at maximizing resource utilization at the lowest unit. The opened Gelephu Mindfulness City is a testbed where various experiments, including fintech, digital assets, and blockchain-based currencies, are being conducted simultaneously.

The success of this experiment depends on how much it maintains the next-generation hydropower investment, foreign exchange reserve strategy stabilization, and the government's asset management credibility.