Nestled in the Himalayan mountains between India and China, Bhutan has emerged as a surprising player in the world of cryptocurrency.
Recent data reveals that Bhutan has amassed 13,011 Bitcoin (BTC), valued at approximately $780 million.
This substantial reserve represents nearly one-third of the nation's entire gross domestic product (GDP).
As reported by Arkham Intelligence on X, this move places Bhutan as the fourth-largest state-owned Bitcoin holder globally.
Central to Bhutan’s Bitcoin accumulation is its strategic partnership with Bitdeer, a Singapore-based mining giant.
The country’s investment arm, Druk Holdings & Investments, has converted the abandoned Education City project into its largest Bitcoin mining facility.
The collaboration with Bitdeer has been pivotal.
In 2023, Bitdeer raised over $500 million to support a carbon-neutral Bitcoin mining initiative in Bhutan, and by 2024, the kingdom's mining capacity is projected to expand to 600 megawatts.
This transformation has made Bhutan a significant player in the cryptocurrency mining sector.
Bhutan’s approach to Bitcoin mining is as distinctive as its picturesque landscape.
Unlike many countries that acquire Bitcoin through asset seizures, Bhutan's holdings stem from its mining operations, which are powered by the country’s abundant hydropower resources.
The nation’s commitment to eco-friendly practices is evident, with its mining operations designed to be entirely carbon-neutral.
The collaboration with Bitdeer has amplified Bhutan's mining capabilities.
Arkham Intelligence noted,
“We were able to corroborate the timeline of on-chain mining activity with time-lapse satellite imagery of facility construction.”
This expansion in mining capacity aligns with Bhutan’s broader investment strategy, which includes not only digital assets but also hydropower projects and ventures into the metaverse.
Bhutan’s Bitcoin holdings are not merely passive assets.
Arkham’s data indicates that Druk Holdings’ wallets are actively engaged in transactions, with significant sums flowing through exchanges like Kraken.
For instance, in July, Bhutan transferred $25 million worth of BTC for sale, a notable figure for a country with a GDP of around $3 billion.
This dynamic use of its Bitcoin reserves highlights Bhutan’s strategic approach to integrating digital assets into its economy.
While Bhutan's crypto journey mirrors El Salvador's in some respects, there are distinct differences.
El Salvador made headlines by adopting Bitcoin as legal tender, holding nearly 5,877 BTC worth over $355 million.
Unlike El Salvador, which bought Bitcoin at high prices, Bhutan has mined its Bitcoin at a much lower cost, positioning itself advantageously for future profits.
Both nations utilise renewable energy sources for their mining operations — El Salvador relies on geothermal energy from volcanoes, while Bhutan harnesses hydropower.
Despite Bhutan's smaller population compared to El Salvador (790,000 versus 6.3 million), the kingdom's entry into the cryptocurrency arena is poised to make a significant impact.
Bhutan’s foray into the cryptocurrency realm reflects a broader strategic shift.
The kingdom’s investment strategy, driven by Druk Holdings, now prominently includes digital assets alongside traditional sectors like hydropower, tourism, and agriculture.
The kingdom’s tech-forward approach, which also explores ventures in the metaverse, positions Bhutan as a unique player in the global economic landscape.
As Bhutan continues to expand its mining capabilities and integrate cryptocurrency into its economic framework, its distinctive blend of traditional values and modern technology might well define its future in the digital age.
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Cointelegraph
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Cointelegraph