Bhutan Becomes 4th Largest Bitcoin Holding Government With $770M Worth of Stash

Bhutan became the second country to officially disclose its Bitcoin holdings after El Salvador.

Bhutan, a small country between India and China with a population of 780,000, boasts a substantial amount of BTC. A disclosure from Arkham revealed that the country has become the fourth-largest Bitcoin-holding government entity, with its BTC stash accounting for almost 27.9% of its gross domestic product (GDP) in 2023.

Unlike most countries on the Arkham list that acquired their Bitcoin through seizure, Bhutan’s holding is a product of its mining activities through Druk Holdings and Investments, a state-owned crypto miner. The Asian country harnessed its rich hydroelectric amenities to power mining operations.

It bears mentioning that Bhutan became the second country to officially disclose exposure to Bitcoin after El Salvador. However, Bhutan’s stash of the premier asset trumps the Central American country by more than double. El Salvador has acquired 5,876 BTC ($348 million), while Bhutan holds 13,036 BTC ($770 million).

Bhutan’s Heavy Investment in Bitcoin Mining

Per Arkham, Bhutan has invested a wholesome amount of its resources in building crypto mining facilities, with the now-defunct Education City project its biggest endeavor yet. The country’s venture dates back to 2019, when Bitcoin was less than $10,000.

Powering these power plants was sustainable for Bhutan, as it generated 23,760 MW of electricity from its hydropower plants, which were fed by the Himalayan glaciers. This allowed the landlocked nation to sufficiently service its mining structures and citizens.

A report showed that the state-owned mining firm had invested $192 million in purchasing mining equipment between 2020 and 2023. These large-scale Bitcoin mining activities continued silently until Bhutan’s first major announcement in April. 

Druk Holdings announced a partnership with Bitdeer to expand its mining capacity to 600 megawatts by 2025. The expansion detailed Bhutan’s plan to increase its mining capacity by five times, from 100MW to 500MW.

Notably, Bhutan’s heavy stash places it only below the United States, China, and the United Kingdom. The US holds 203,239 BTC, China seized 190,000 BTC, while the UK’s portfolio has 61,000 BTC. Bhutan’s stash would have been less than the German government’s, but the entity sold all its 50,000 BTC between June and July.