Bhutan, a small Himalayan nation with a population of fewer than 1 million, is reported to have tacitly built up a notable Bitcoin collection. Druk Holdings, its state’s investment firm, has revealed more than $780 million accumulated in Bitcoin.
Sources report that this huge investment of Bitcoin in Bhutan makes up almost one-third of the country’s gross domestic product (GDP), which is around $3 billion. The government’s involvement with Bitcoin in Bhutan is mainly focused on mining operations to help diversify the country’s revenue sources.
Bitcoin in Bhutan
The Bitcoin in Bhutan narrative is led by the state-owned Druk Holdings, which has been executing mining operations across the country. These mining activities are associated with Bitdeer, a dominating name in cryptocurrency mining that has extended its facilities in Bhutan. The company supposedly aspires to reach a 600-megawatt mining capacity by 2025.
“Bhutan has constructed Bitcoin mining facilities in multiple locations, with the largest being on the site of the now-defunct Education City project,” said Arkham in a post on social media platform X.
Bitdeer reportedly has a connection with Bitcoin mining in Bhutan. It is a Singapore-based cryptocurrency mining firm. In 2023, Bitdeer publicly shared its partnership with the Bhutanese government to build mining rails in Southeast Asia. The company got more than $500 million for this venture, sources report. The funds were used to build the 100-megawatt mining facility in Bhutan. By April 2024, Bitdeer announced its plans to increase the country’s mining capacity to 600 megawatts by 2025.
Bitcoin in Bhutan
Focus on Digital Assets
Sources report that Druk Holdings has a wider strategy to bring digital assets into its portfolio. The fund’s website mentions digital assets as one of its key areas, alongside other technology-driven investments like hydropower projects and projects into the metaverse. This diversification reflects Bhutan’s commitment to solidifying its economic stability and ensuring long-term growth.
The Druk Holdings wallets, tracked by blockchain analytics firm Arkham, have logged active deposit and withdrawal activity. Lately, Druk Holdings has received up to 2 BTC from Foundry, another major Bitcoin miner, and many unidentified Bitcoin addresses. The fund has also sent Bitcoin to other addresses, including cryptocurrency exchanges.
In one significant transaction from early July, Druk Holdings moved more than $25 million in Bitcoin to the crypto exchange Kraken, where it was allegedly sold.
Bhutan and Global Bitcoin Holdings
Druk Holdings’ accumulation of Bitcoin is reportedly one of the biggest state-owned collections of Bitcoin across the world. Its government ranks as the fourth-largest Bitcoin owner globally. This is especially notable as Bhutan’s humble economy had a GDP of around $3 billion in 2022—almost half that of the Maldives.
Even with a heavy Bitcoin investment, the country is surrounded by the challenges of economic diversification. Bhutan’s economy has conventionally depended on hydropower exports, agriculture, and tourism. However, the country’s restricted private sector development has coerced the government to look for additional revenue streams.
Hence, the focus of Bitcoin in Bhutan and the notable BTC holdings present hope for economic growth. By using its natural resources, like hydropower, to charge its mining operations, Bhutan can build new revenue streams that add to the country’s financial stability.
Bitcoin in Bhutan
Bhutan’s Measurable Approach to Well-Being
One of the most intriguing perspectives of Bhutan’s approach to governance is its focus on Gross National Happiness (GNH) as a measure of the country’s well-being. Bhutan holds a higher value for the happiness of its citizens than on conventional economic metrics like GDP. Even with this, the nation has upheld Bitcoin in Bhutan as a means to provide long-term economic growth and happiness for its people.
Conclusion
Bhutan’s $780 million investment in Bitcoin shows the country’s dedication towards diversification in its economy and moving towards digital assets. By joining hands with Bitdeer and its increased mining operations, Bhutan is manifesting itself as a major player in the global Bitcoin industry, securing the country’s financial future. Learn more about Bitcoin in Bhutan with TheBITJournal.
