In the shadow of the Himalayas, Bhutan is making waves on the global financial stage with a jaw-dropping Bitcoin haul.
Nestled between India and China, Bhutan—a scenic, landlocked gem—has amassed a staggering bitcoin (BTC) reserve worth over $780 million in recent years.
This impressive haul constitutes nearly one-third of the country’s gross domestic product (GDP) and makes Bhutan’s state-owned stash the fourth largest in the world, according to data from the on-chain analytics platform Arkham.
Known for prioritizing the happiness of its fewer than 900,000 citizens over financial metrics, Bhutan is now making headlines for its bold foray into the world of cryptocurrency. It is only the second nation, after El Salvador, to officially hold BTC, and it does so through its state-owned investment arm, Druk Holdings.
Arkham has revealed that Bhutan has set up Bitcoin mining operations at multiple sites, with the largest facility located on the grounds of the now-defunct Education City project.
Unlike many governments that acquire Bitcoin through law enforcement asset seizures, Bhutan’s BTC has been mined directly, thanks to a dramatic ramp-up in mining operations since early 2023.
These mining ventures are closely tied to Bitdeer (BTDR), a prominent player in the cryptocurrency mining arena. In 2023, Singapore-based Bitdeer announced a partnership with the Bhutanese government to launch cryptocurrency mining operations in Southeast Asia, securing over $500 million for the project.
Soon after, Bitdeer unveiled a 100-megawatt (MW) mining facility as the first phase of its ambitious plan. By April 2024, Bitdeer projected expanding Bhutan’s mining capacity to a remarkable 600MW by 2025.
Despite its enchanting landscape and cultural richness, Bhutan’s economy remains modest, with a GDP of just under $3 billion in 2022—about half the size of the Maldives’ economy. The country relies on hydropower, tourism, and agriculture for its economic sustenance.
Nevertheless, Druk Holdings is charting a course for economic diversification. Their focus on “digital assets” is a significant part of their tech-driven investment strategy, which also includes ventures into hydropower and the metaverse.
Recent activity in Druk’s bitcoin wallets, as tracked by Arkham, reveals a flurry of deposits and withdrawals. The fund has received up to 2 BTC from Foundry, another miner, and various unidentified addresses in recent weeks.
It has also moved bitcoin to other addresses and crypto exchanges, including a notable transaction in early July where over $25 million worth of BTC was transferred to Kraken, likely to be sold.
