In a remarkable development within the Bitcoin world, tiny kingdom of Bhutan has made headlines by amassing over $780 million in bitcoin, thanks to its extensive mining operations.
According to reports from Arkham Intelligence, this Himalayan kingdom, known for its commitment to sustainability, has emerged as the fourth-largest government bitcoin holder globally, surpassing even El Salvador in its bitcoin reserves.
According to Arkham Intelligence, Bhutan holds 13,011 BTC, which equates to approximately $780 million.
This significant accumulation of bitcoin is a result of the country’s strategic investment in Bitcoin mining, rather than asset seizures or other legal avenues commonly used by governments to acquire digital assets.
Related: Bhutan Ramps Up Bitcoin Mining Operations Ahead of Halving
The country’s journey into the world of Bitcoin began in earnest in 2019 when it started mining Bitcoin using its abundant hydropower resources.
This eco-friendly approach has set it apart from many other countries in the Bitcoin space. The nation’s commitment to sustainable energy has been a driving factor behind its successful mining operations.
In May 2023, Bhutan’s investment arm, Druk Holdings, partnered with Bitdeer, a mining giant, to develop a carbon-neutral Bitcoin mining operation.
This collaboration aims to expand the country’s mining capacity from 100 megawatts to 600 megawatts by 2025. Arkham revealed:
“Bhutan has constructed Bitcoin mining facilities in multiple locations, with the largest being on the site of the now-defunct Education City project […] We were able to corroborate the timeline of on-chain mining activity with time-lapse satellite imagery of facility construction.”
The tiny kingdom’s bitcoin holdings are notably more substantial than those of El Salvador, which started acquiring bitcoin in 2021. As of early 2024, El Salvador holds 5,875 BTC, worth about $331 million. This is less than half of Bhutan’s holdings.
While Bhutan has focused on sustainable mining practices using its rich hydropower resources, El Salvador’s bitcoin acquisition strategy has been marked by purchasing BTC at a higher price point.
El Salvador began buying bitcoin when prices were around $51,700, whereas Bhutan’s mining operations have benefited from the lower costs associated with its renewable energy.
Notably, El Salvador has also undertaken similar initiatives toward green mining, by using its vast geothermal energy sources to mine the digital asset.
Bhutan’s focus on eco-friendly mining has been a key factor in its Bitcoin success.
The country’s abundant hydropower resources provide a clean and cost-effective source of energy for its mining operations. This sustainable approach not only supports its environmental goals but also enhances the profitability of its mining activities.
This tiny south-Asian country, smaller than Switzerland, has limited economic diversity, mainly depending on hydropower, tourism, and agriculture. Its 2022 GDP was just under $3 billion, roughly half of the Maldives’.
To boost its economy, Bhutan is exploring digital assets alongside hydropower and metaverse projects.
With a GDP of around $3 billion, the country’s bitcoin holdings represent a significant portion of its economic output. The kingdom’s bitcoin assets are equivalent to nearly a quarter of its GDP, highlighting the substantial impact of its mining operations on its national economy.
As Bhutan continues to develop its Bitcoin mining infrastructure, the country is likely to maintain its position as a major player in the Bitcoin world.
The planned expansion of mining capacity and ongoing investments in sustainable technology suggest that Bhutan will remain at the forefront of eco-friendly Bitcoin mining.
Bhutan’s impressive bitcoin holdings underscore the potential for smaller nations to make a significant impact in the global Bitcoin market.
By leveraging its vast renewable energy resources—that otherwise would have gone to waste—and adopting a sustainable approach to mining, Bhutan has established itself as a leading player in the Bitcoin space.
With its bitcoin reserves now valued at over $780 million, Bhutan’s innovative strategy offers a model for other nations looking to enter the world of digital assets.
As the Bitcoin landscape continues to evolve, Bhutan’s role as a prominent bitcoin holder is set to expand, demonstrating how even small countries can make a big splash in the global economy.
