Key Takeaways
- Bhutan’s bitcoin reserves have reached $1.3 billion, nearly 40% of its GDP.
- The nation leveraged surplus hydropower for sustainable, low-cost bitcoin mining.
- Bhutan will now hold its bitcoin long-term instead of selling to fund government spending.
Bhutan has discreetly accumulated approximately $1.3 billion in bitcoin reserves, a sum representing nearly 40% of the country’s gross domestic product.
This places the Himalayan kingdom among the world’s top three sovereign bitcoin holders, trailing only the United States and China.
According to Arkham Intelligence, Bhutan’s holdings are now the third-largest globally among state actors.
For a detailed view of government and institutional bitcoin reserves, see the state and corporate bitcoin treasuries list.
Hydropower-driven strategy
Bhutan’s bitcoin accumulation began around 2019–2020, with the country harnessing its abundant hydropower resources for mining.
Initiatives were led by the royal family and state-owned Druk Holding & Investments, utilizing partnerships with entities like Bitdeer and Green Digital.
By redirecting surplus renewable electricity into mining, Bhutan has managed to keep operational costs low and minimize environmental impact.
Economic impact and policy
Proceeds from bitcoin sales have been used to double civil servant salaries and fund development initiatives, helping offset challenges from declining tourism revenue.
This approach has provided Bhutan with a fiscal cushion and diversified its income sources. Bhutan’s focus on sustainability has drawn international attention, as its nearly 100% hydropowered grid allows for low-carbon mining operations.
Recently, Bhutan announced it will now hold its bitcoin reserves long-term, moving away from liquidating for government spending. As one official noted:
“We are now committed to holding our bitcoin reserves as a strategic asset for the kingdom’s future.”
