Bhutan, a small country in South Asia, has emerged as a major player in the world of Bitcoin, surpassing even El Salvador in terms of cryptocurrency holdings. According to data from Arkham Intelligence, Bhutan currently holds 13,029 Bitcoin, valued at approximately $758 million. This makes Bhutan the largest Bitcoin holder in South Asia, surpassing El Salvador’s 5,875 BTC worth $331 million. The Bitcoin holdings are reportedly linked to the Kingdom of Bhutan’s investment arm, Druk Holdings and Investments (DHI), which has been mining Bitcoin using the country’s abundant hydroelectric power.
The scale of Bhutan’s Bitcoin holdings is significant when compared to the size of its economy. Bhutan’s GDP is expected to reach $3 billion by the end of 2024, meaning the Bitcoin stash represents roughly a quarter of its GDP. Bitcoin mining in Bhutan began in April 2019, when the cryptocurrency was priced at around $5,000. Recently, in May 2023, DHI partnered with Bitdeer to expand its carbon-neutral mining operations, with plans to boost the country’s mining capacity to 600 megawatts by mid-2025. In comparison, El Salvador began purchasing Bitcoin in September 2021 when prices were much higher, at around $51,700. The Central American nation has since focused on mining Bitcoin using geothermal energy from volcanoes but trails Bhutan in overall holdings.
The largest Bitcoin mining facility in Bhutan is located on the site of a failed $1 billion government project called “Education City.” The project aimed to establish an international center for education and knowledge but was abandoned due to scandals and mismanagement. The Bitcoin mine on this site is concealed behind mountainous terrain but is betrayed by transformers and power lines. Historical satellite imagery reveals that its construction began in December 2021. The country’s government, including the Ministry of Finance, has remained secretive about its cryptocurrency activities. DHI has not provided detailed information on revenues or investment in bitcoin mining.
Bhutan’s interest in Bitcoin mining arose as a response to the economic challenges caused by the COVID-19 pandemic. Bhutanese officials began engaging with bitcoin miners and suppliers in 2020. The country experienced a significant surge in power usage by the industry in 2022, along with a substantial increase in imports of chips used for Bitcoin mining. While the identified state-owned mines represent a significant development, they may not be Bhutan’s largest. The country has also partnered with Singaporean Bitcoin mining giant Bitdeer for a 600 MW facility in the town of Gedu. This diversification of its crypto portfolio further solidifies Bhutan’s position as a major Bitcoin holder in the region.
