Bhutan Surpasses El Salvador in Bitcoin Holdings Due to Mining Operations
The fourth-largest government holdings of Bitcoin are now in the Kingdom of Bhutan, with over 13,000 BTC valued at $750 million, as reported by blockchain analytics firm Arkham Intelligence. Druk Holding & Investments (DHI), the state investment arm of Bhutan, manages this substantial Bitcoin stash, surpassing even El Salvador’s holdings of 5,876 BTC worth $331 million.
Bhutan’s involvement in cryptocurrency mining has been a known fact, but new data from Arkham Intelligence sheds light on the scale of its operations. The Bitcoin reserves in Bhutan are a result of mining efforts that commenced in 2019, leveraging the country’s abundant hydroelectric power for sustainable mining operations.
Unlike other governments that acquire Bitcoin through asset seizures, Bhutan’s crypto wealth originates directly from its green-powered mining farms. One of the largest facilities is situated on the former Education City project site, according to Arkham.
In addition to Bitcoin, DHI holds 656.013 ETH and smaller amounts of Binance Coin (BNB), Polygon (MATIC), Tether (USDT), and other cryptocurrencies. This recent revelation follows a Forbes report from April 2023, disclosing DHI’s transactions with bankrupt crypto lenders BlockFi and Celsius.
DHI clarified that no money was lost in these transactions, emphasizing that its Bitcoin mining operations began in April 2019 when Bitcoin was priced around $5,000. Bhutan’s mining endeavors were further bolstered by a strategic partnership in 2023 with Bitdeer, a mining firm led by former Bitmain Technologies CEO Jihan Wu.
Cantor Fitzgerald, a veteran Wall Street investment bank, projected Bitdeer to become one of the largest publicly traded mining firms by the end of the year, despite being undervalued compared to other mining companies. Decrypt has sought comments from DHI for further insights and will update accordingly.
