Bhutan, Small Nation with $3 Billion GDP, Secures $780 Million in Bitcoin
Bhutan, a small Himalayan nation with a population of less than 1 million people, has amassed a significant amount of bitcoin, totaling over $780 million, which accounts for nearly a third of its Gross Domestic Product (GDP). This accumulation has been made possible through mining operations managed by the state-owned Druk Holdings.
The mining activities in Bhutan are associated with Bitdeer, a company that has been actively expanding its mining facilities within the country. Bitdeer aims to achieve a capacity of 600 megawatts by the year 2025. This strategic move by Bhutan to invest in digital assets is part of Druk Holdings’ broader initiative to diversify its revenue streams. Recent wallet activities have indicated a mix of deposits and withdrawals, including substantial transactions with exchanges such as Kraken.
Located between India and China, Bhutan has emerged as a picturesque nation that has embraced bitcoin as a valuable asset. With holdings exceeding $780 million, Bhutan’s BTC reserves are among the largest globally and represent a significant portion of its GDP. The country, known for its focus on the happiness of its citizens over material wealth, has officially integrated bitcoin into its state-owned Druk Holdings fund, following in the footsteps of El Salvador.
According to insights from Arkham, Bhutan has established bitcoin mining facilities across various locations, with the largest one situated at the site of the former Education City project. Unlike many governments that acquire BTC through law enforcement seizures, Bhutan’s bitcoin reserves are primarily derived from mining operations, which have significantly intensified since early 2023.
Bitdeer, a prominent mining company, has collaborated with the Bhutanese government to set up cryptocurrency mining operations in Southeast Asia. By securing over $500 million for this venture, Bitdeer has already established a 100-megawatt facility as part of its initial project phase. Looking ahead, Bitdeer plans to expand Bhutan’s mining capacity to 600 megawatts by 2025, enhancing the country’s foothold in the crypto mining sector.
Despite its small size compared to Switzerland, Bhutan faces economic challenges with limited diversification and a budding private sector. The nation heavily relies on revenue from hydropower, tourism, and agriculture, with its GDP reaching just under $3 billion in 2022, approximately half that of the Maldives.
Druk Holdings is actively exploring various sectors to bolster Bhutan’s economic prospects. The company’s investment strategy emphasizes digital assets, alongside hydropower projects and metaverses. Recent data tracking Druk’s wallets has revealed substantial activity, including deposits from Foundry and transfers to unidentified Bitcoin addresses. Notably, significant BTC transactions have been made to exchanges like Kraken, suggesting active engagement with the cryptocurrency market.
In conclusion, Bhutan’s foray into bitcoin mining and digital asset investments underscores its commitment to diversifying its revenue streams and embracing the potential of cryptocurrencies in bolstering its economic landscape.
