The Kingdom of Bhutan ranks as the fifth largest Bitcoin holder, with a stash of 13.047 BTC.
Bhutan, a tiny kingdom nestled in the Himalayas, has captured the attention of the cryptocurrency world by becoming the fifth-largest state-level Bitcoin holder, with an impressive holding of 13.047 BTC, valued at approximately $755 million.
According to data from the Bitcoin Treasuries platform, the kingdom of Bhutan ranks behind Ukraine as one of the largest holders of the market-leading cryptocurrency. It also highlights the fact that this small country has a larger BTC holding than El Salvador, the Central American country that shocked the world by making Bitcoin legal tender in September 2021.
Bitcoin mining as a revenue driver for Bhutan
Bhutan has been involved in Bitcoin mining for several years, although its operations were largely kept secret until recently. Thanks to the abundant hydroelectric power the country produces, BTC mining operations are economically viable and sustainable. In 2023, the country ramped up its mining efforts, establishing four mining centers that use renewable energy. This approach has not only allowed Bhutan to accumulate a significant amount of Bitcoin, but has also helped diversify its economy, which has traditionally relied on agriculture and tourism.
On On-chain data provided by the Arkham Intelligence platform reflect the innovative investment strategy that the government of Bhutan has implemented, led by its state arm, Druk Holdings & Investments, to accumulate the significant amount of bitcoins it currently holds.
In addition to Bitcoin, the Kingdom of Bhutan also holds around $1,5 million worth of Ethereum, the second-largest cryptocurrency on the market, and smaller amounts in other cryptoassets, such as The Sandbox (SAND) and Polygon (MATIC).
Key collaborations in the crypto sector
The growth of Bitcoin mining operations in Bhutan has been facilitated by strategic partnerships, most notably with Bitdeer Technologies Group.
In April last year, Bitdeer partnered with Druk Holdings, Bhutan’s state-owned fund, to increase the country’s mining capacity, projecting to reach a capacity of 500 megawatts by the first half of 2025. This collaboration has not only boosted Bhutan’s mining capacity on the Bitcoin network but has also attracted significant investments, consolidating its position in the cryptocurrency ecosystem.
A growing digital treasure
On-chain data also reveals that digital wallets associated with the government of Bhutan have been receiving Bitcoin since February 2021. Over the years, the country has shown active management of its holdings, making regular deposits and withdrawals. Recently, significant transactions have been recorded with several cryptocurrency exchange platforms, suggesting that the government is using its digital assets strategically.
The combination of efficient mining and active management of its holdings has allowed Bhutan to not only accumulate wealth in the form of Bitcoin, but also position itself as a relevant player in the crypto space.
The government's remarkable Bitcoin holdings, which surpass the figures of other countries such as El Salvador, reflect its bold and strategic approach to the digital economy.
As the country continues to expand its crypto mining capabilities and explore new opportunities in the digital asset space, its influence in the cryptocurrency ecosystem could grow even further. Bhutan has been focused on sustainability and innovation, which can not only continue to drive the diversification of its economy and state wealth, but could also set a model for other developing nations, which are also looking to leverage the digital revolution to accelerate their economic, technological, and social growth and development.
