Bhutan Rises to Fourth in Global Bitcoin Reserves with $750 Million Accumulation
Bhutan has recently emerged as a significant player in the realm of bitcoin mining, with its holdings now estimated at approximately $780 million. This recognition follows Arkham Intelligence’s identification of Bhutan as the fourth-largest governmental holder of bitcoin globally. Unlike many other nations that acquire Bitcoin through seizures or purchases, Bhutan’s cryptocurrency wealth stems from its own mining endeavors. This unique situation is facilitated by Bhutan’s abundant hydropower resources, which power its mining facilities.
The Kingdom of Bhutan has been engaged in Bitcoin mining since at least 2017, but it wasn’t until last year that it ramped up efforts to enhance its operations significantly. Druk Holding & Investments, Bhutan’s investment arm and a government entity, supervises the mining activities. The country strategically established multiple mining facilities across its mountains, including the largest one at the former Education City project site. This decision not only utilizes existing infrastructure but also aligns with Bhutan’s commitment to sustainability.
Bhutan’s dedication to eco-friendly practices is further demonstrated through its collaboration with Bitdeer Technologies Group to develop a carbon-neutral mining operation. This partnership aims to boost Bhutan’s mining capacity from 100 to 600 megawatts by 2026, showcasing the nation’s capacity to lead in cryptocurrency and diversify its economy.
Traditionally classified as a lower-middle-income country relying on hydropower, tourism, and agriculture, Bhutan’s shift towards digital assets holds significant economic implications. Over one-third of the country’s GDP is now linked to Bitcoin, prompting the government to explore new revenue streams to bolster its economy.
The surge in mining operations has led to increased domestic energy consumption in Bhutan, reducing hydropower exports to neighboring India, a traditional revenue source. Regulatory measures have been implemented by the Royal Monetary Authority of Bhutan to govern this burgeoning industry. These include Know Your Customer (KYC) regulations, consumer protection measures, and the establishment of a secure investment environment for digital assets.
As global interest in cryptocurrencies continues to rise, Bhutan’s proactive stance could serve as a blueprint for other nations seeking to venture into this domain. This strategic approach positions Bhutan as a key player in the evolving landscape of digital currencies, showcasing its potential to navigate and thrive in the dynamic world of cryptocurrency.
