Mining facilities in more than 4 locations in Japan
Bhutan, a small Buddhist kingdom located in the Himalayas, seems to have been mining the crypto asset (virtual currency) Bitcoin (BTC) behind the scenes. Forbes reported on the 22nd new details and background, including its location.
Based on analysis of satellite imagery from Planet Labs and Google Earth, as well as information provided by sources, Forbes has identified four suspected crypto mining facilities.
It is located near Dochula Pass, famous for its 108 pagodas, Trongsa in the central region, Dagana in the south, and along the national highway between Phuntsholing and Thimphu, Bhutan’s first paved road.
Satellite images showed rectangular mining units, data center cooling systems, and large power transmission lines and transformers running from Bhutan’s hydroelectric power plant to the mining facility. It is located in a place that is not noticeable from the ground due to a grove of trees.
The largest of these facilities is along the national highway. According to past satellite images, construction began around December 2021. During the same period, Bhutan imported approximately 28.8 billion yen ($193 million) worth of “processing equipment” from cryptocurrency mining hardware companies, according to customs data from the country’s Ministry of Finance.
Previous reports have already revealed that Bhutan is engaged in cryptocurrency investment and mining, but the Bhutanese government has not disclosed the location of the mining facilities.
It was revealed in April of this year that Druk Holding & Investments (DHI), the sovereign wealth fund of the Kingdom of Bhutan, was investing in virtual currencies.
He had an account with Celsius, a bankrupt virtual currency lending company, and made numerous deposits, withdrawals, and borrowings of Bitcoin, Ethereum (ETH), USDT, etc. from April to June 2022. He also had deposited the equivalent of 2.4 billion yen into his account.
connection: Bhutanese government investment fund invests billions of yen in virtual currency = report
Partner with Bitdeer to expand mining scale
Bhutan’s sovereign wealth fund DHI plans to partner with Nasdaq-listed cryptocurrency mining company Bitdeer to build a new mining facility by the third quarter (July-September) of 2024.
The facility being developed by Bitdeer is located in the southern town of Gedu, which is separate from the four locations mentioned above, and there is a possibility that this will become the company’s largest base in the future. Bitdeer announced in August that it had brought 100 megawatts (MW) of power online at the site.
In July, the company announced that it already has 11,000 mining machines in operation and has ordered 15,000 more.
DHI announced in May that its business is profitable and that it is basically selling the mined Bitcoins, but it is holding them for the long term, keeping in mind the possibility that the price will rise after the halving in 2024. It is said that there are some
connection:Kingdom of Bhutan starts mining Bitcoin from 2019
What is half-life?
It refers to the timing when the mining reward (= new issuance amount) of virtual currencies such as Bitcoin is reduced by half. Many virtual currencies have an issuance limit set to prevent inflation, and the amount of new issuance is reduced by half each time a halving occurs at a certain period. It is also a noteworthy event unique to virtual currencies, as the scarcity value increases significantly as the supply decreases, making it easier for prices to soar.
▶️Virtual currency glossary
connection: Countdown to the next Bitcoin halving in less than a year, what are the market trends and experts’ predictions?
Reasons to invest in virtual currency
Sovereign investment fund DHI has previously said that the purpose of investing in cryptocurrencies is to “implement and benefit from technology.” He also explains that he wants to participate in rapidly evolving technology and build a more sustainable Bhutan.
Bhutan is sometimes referred to as “the last Shangri-La” and is also famous for being ranked 8th in the world in the United Nations’ “World Happiness Ranking” in 2013, but in recent years it has also been facing economic problems. The situation is emerging.
Bhutan’s minimum wage is only about 6,700 yen ($45) per month, and the population is low, according to local newspaper Kuensel. Approximately 12% of people live below the poverty line.
In addition, due to the decline in tourism income due to the new coronavirus pandemic, multiple sources say that Bhutanese government officials have begun full-scale discussions with Bitcoin mining-related businesses during 2020. Ru.
connection: What is the background behind the increase in investment in major asset management companies such as BlackRock and Bitcoin mining companies?