Bhutan’s Surplus Hydroelectric Power Powers Up 600 MW Bitcoin Mining Operation
Bhutan has scaled up its Bitcoin mining operation to 600 megawatts through a partnership with Singapore-headquartered Bitdeer Technologies Group. The country's Druk Holding and Investments (DHI) manages the energy conversion, using surplus hydroelectric power from hydropower plants to fuel the machines. These facilities are strategically located near hydropower plants to minimize transmission losses.
The Bitcoin mining operation uses specialized ASIC miners to convert electricity into computational work, generating between 55 and 75 BTC per week, which amounts to several million US dollars at market prices. The program is deemed 'green' as it utilizes surplus power from the monsoon months between June and September.
DHI operates six mining facilities with a seventh under construction. Bitdeer is raising $500 million to fund the expansion of this operation. The government sells Bitcoin to fund expenses, with the country's reserve peaking at over 13,000 BTC in October 2024, valued at approximately 780 million US dollars or about 27 percent of the country’s annual GDP.
The treasury liquidity and sales patterns indicate that DHI transfers Bitcoin to specific counterparties in regular amounts. The government plans to use up to 10,000 BTC to develop the Gelephu Mindfulness City special administrative region, aiming to create jobs and build a digital economy.