Bhutan has accumulated $780 million worth of Bitcoin through its renewable energy-powered mining operations, placing it among the top government holders of the cryptocurrency.
Arkham’s Revelation
The Kingdom of Bhutan, a small mountain nation with a GDP of approximately $3 billion, has amassed Bitcoin (BTC) worth $780 million. Unlike many other governments, Bhutan’s BTC holdings are derived entirely from its mining operations, which utilize the country’s renewable energy resources.
The matter was first highlighted and reported by blockchain data analytics firm Arkham, which pointed out that Bhutan holds 13,011 BTC, valued at approximately $780.49 million at the current market rate. This places Bhutan in fourth place among governments with the largest Bitcoin reserves, surpassing countries like El Salvador, which holds only 5,875 BTC.
Mining Operations in Bhutan
Bhutan’s BTC accumulation is unique because it does not stem from asset seizures by law enforcement or high-value deals but rather from direct mining operations. The country has established Bitcoin mining facilities in various locations. The largest of these is situated on the site of the now-defunct Education City project, managed by Druk Holdings, Bhutan’s investment arm.
Role of Druk Holdings and Bitdeer
In May 2023, Druk Holdings partnered with Bitdeer, a mining giant, to develop a 100% carbon-free BTC mining operation in the country. Since the start of 2023, Bitcoin mining activities in Bhutan have surged significantly, according to Arkham’s data. Bitdeer, a Singapore-based company, has played a crucial role in this expansion.
In 2023, it raised over $500 million to establish cryptocurrency mining operations in Bhutan, building a 100-megawatt (MW) facility as the initial phase of its project. By April 2024, Bitdeer announced plans to expand Bhutan’s mining capacity to 600 MW by 2025.
Diversifying Digital Assets
Besides Bitcoin, Druk Holdings possesses other digital assets. Arkham’s data indicates that Druk Holdings also owns 656 ETH, valued at approximately $1.5 million, along with quantities of BNB and MATIC.
Druk is exploring various sectors to enhance Bhutan’s financial standing, with digital assets being a primary focus. This investment strategy is evident in Druk Holdings’ involvement in technology-driven initiatives such as hydropower projects and ventures into the metaverse.
Bhutan’s Crypto Strategy
Bhutan’s interest in cryptocurrency extends beyond just holding and mining assets. The country is also exploring the potential of creating a central bank digital currency (CBDC), signaling a strategic approach toward integrating both digital assets and traditional financial systems. These efforts underline the increasing appeal of cryptocurrencies among developing nations to foster economic growth.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
