[NEWS] Bhutan builds large-scale Bitcoin mining facility, satellite images reveal

It has been discovered that the Kingdom of Bhutan, known as the "Land of Happiness" in the Himalayas, has secretly constructed a Bitcoin (BTC) mining facility. Forbes reported that this was discovered through satellite images.

According to reports, dozens of shipping containers have been hidden in Thimphu, the capital of Bhutan. Mining machines appear to be operating inside. It is estimated that a significant amount of mined Bitcoin has been accumulated.

Bhutan, ruled by Jigme Khesar Namgyel Wangchuck, known as the "Dragon King," is secretly transforming into a "cryptocurrency Shangri-la (utopia)." The Bhutanese government plans to use land, funds, and energy for mining operations to avoid an economic crisis.

Bhutan has not disclosed details about the Bitcoin mining factory.

Bhutan's electricity is mainly generated by hydroelectric power from rivers flowing at the foot of the Himalayas. Hydroelectric power not only supplies electricity to Bhutan, but also sells it to neighboring India. However, it seems that Bhutan has been planning to use its hydroelectric power plants for Bitcoin mining factories for four years.

The Bhutanese government told local media that it would start mining operations when the price of Bitcoin was about $5,000 (about 730,000 yen).

Bhutan has been working with Bitdeer Technologies, a Nasdaq-listed company founded by Jihan Wu, founder of Bitmain, a major Bitcoin mining machine developer. Bitdeer announced in April that it was in negotiations to secure 100 megawatts of electricity for a mining facility in Bhutan that is scheduled to break ground this quarter.

Bhutan, surrounded by China, India, and Nepal, is known for placing importance on the happiness of its citizens.

Bhutan has been building a cryptocurrency portfolio for four years. It has invested millions of dollars in cryptocurrencies such as Bitcoin and Ethereum (ETH). This was revealed by the bankruptcy filings of cryptocurrency custody companies BlockFi and Celsius.

Investing about 147 billion yen to establish mining factory

This time, Forbes has identified the locations of four mining facilities operated by Bhutan, based on sources familiar with Bhutan's cryptocurrency investments and analyzing satellite images such as Google Earth. Rectangular mining units, data center cooling systems, and high-capacity transmission lines and transformers extending from hydroelectric power plants to the facilities have been confirmed.

According to sources, one of the mining facility bases in Bhutan was built near Dochula Pass, which is culturally and politically significant and home to 108 memorial shrines commemorating Bhutanese fallen soldiers.

Analysis of satellite images from Planet Labs and Google Earth shows that construction began at this location in 2020, and construction of the facility was completed at the end of 2022. Aerial images confirmed the mining facility, with green and white roofs, surrounded by miles of forest.

The second facility was reportedly built in a town east of Thimphu, near Trongsa, the ancestral home of the current Wangchuck dynasty. The third facility appears to be in the forested area of ​​Dagana.

The mining facility is along the line of Bhutan's project to establish an international center for "education and knowledge," Education City. Bhutan is said to have spent $1 billion on the project. According to customs data from the Ministry of Finance, the construction of the facility was posted in December 2021 for $193 million as a "processing device."

The minimum wage in Bhutan is set at $45, and about 12% of the population lives in poverty. Bitcoin is seen as a way to revive Bhutan's economy.

Reference:Forbes
Image: Shutterstock

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