Bhutan Leverages Its Abundant Hydropower Resources to Fuel Investments in Green Energy Initiatives and Bitcoin Mining

Despite its modest size, with approximately $3 billion in assets under management compared to giants like Norway's or Singapore's Temasek

Bhutan, the Himalayan kingdom renowned for its emphasis on Gross National Happiness and strategic management of hydropower resources, is making significant strides in both green energy initiatives and Bitcoin BTC/USD mining, according to Ujjwal Deep Dahal, CEO of Druk Holdings and Investments.

What Happened: DHI, the nation’s sovereign wealth fund, is incrementally expanding its modest size to efficiently handle targeted investments, aiming for optimal returns despite the fund's small size of about $3 billion. This compares to giants like Norway's sovereign wealth fund, which manages over $1.5 trillion, or Singapore's Temasek TMSKF, which has about $400 billion in assets under management.

Despite the difference in scale, DHI is efficiently allocating capital and achieving high returns, Deep Dahal noted.

“We are not focused on largeness for the sake of largeness. Size does not matter; it is about being efficient, focused, and achieving optimal returns on our investments,” Dahal said in an interview with Fortune.

The official pointed out that in a rapidly changing world, speed and agility are crucial, and smaller funds like DHI can pivot quickly to seize emerging opportunities.

Hydropower Tech Hub Aspirations:

Bhutan is a hydropower powerhouse, currently generating 2.5 gigawatts of electricity from its rivers and has plans to add another 3 gigawatts in the coming years.

The country's goal is to become a regional hub for green energy technologies, including pump storage and hydrogen power.

"We want to test and deploy these technologies rapidly in Bhutan and then, if successful, scale them globally for the common good," Dahal added.

Bitcoin Mining Fills Carbon Offset Need:

In 2019, Bhutan began mining Bitcoin and has become a significant holder of the cryptocurrency, integrating it into a broader strategy for alternative investments.

"We are using our green hydropower to mine Bitcoin, which helps to offset the carbon emissions associated with traditional mining methods," explained Dahal.

He sees Bitcoin as "a parallel to digital gold" and part of a broader strategy for alternative investments, which includes cryptocurrencies, hedge funds, and private equity.

"We are also investing in promising startups and technologies that can contribute to a more sustainable and happier future for the Bhutanese people."

Crypto Holdings Surpass El Salvador's Bitcoin Reserves:

Arkham, a blockchain analytics platform, estimates that Bhutan's Bitcoin holdings are now worth over $646 million, exceeding even El Salvador's reserves, according to a report by Bloomberg in April.

The report noted that the Southeast Asian nation's flagship cryptocurrency fund, known as the "Heart Essence" portfolio, is valued at over $2 billion.

"The Heart Essence portfolio is a distillation of the best and most enduring assets and technologies of humankind, collected and managed with the wisdom of the dragon people," Arkham stated in its analysis.

Gelephu Mindfulness City For Eco-Friendly Eco Corridor

Bhutan is developing the Gelephu Mindfulness City, a special administrative region designed to be an economic corridor connecting South and Southeast Asia.

This zone will aim to attract businesses in sectors like healthcare, technology, and green energy, fostering innovation and a startup culture, according to DHI's CEO.

The city will also integrate a strategic reserve of cryptocurrencies, including Bitcoin, Ethereum ETH/USD, and Binance Coin BNB/USD, to bolster economic resilience and provide long-term value.

"We are thinking about how to best integrate cryptocurrencies into our investment strategy to maximize returns and contribute to the overall economic well-being of Bhutan," Dahal added.

The officials at DHI are planning to make an announcement about the Gelephu Mindfulness City in the coming months, and the goal is to have the city operational by 2026.

Read More:

Elon Musk Slams 'Anti-Bitcoin' Narrative As He Explains Why BTC Is Being Used For X Integration

Despite Market Downturn, This Crypto Project Is Still Aiming For A $1 Billion Valuation By 2025