Bhutan’s Hydropower-Fueled Bitcoin Mining Operation Generates Over $1 Billion

The small Himalayan kingdom of Bhutan has quietly built one of the world’s largest government-owned Bitcoin operations, accumulating over $1.4 billion worth of cryptocurrency through mining powered entirely by renewable hydroelectric energy.

With just 800,000 people, Bhutan now ranks as one of the largest government holder of Bitcoin globally, holding over 11,400 Bitcoin that represents roughly 40% of the country’s entire GDP.

Bhutan has demonstrated sophisticated market timing by recently capitalizing on Bitcoin’s surge to new all-time highs above $123,000. Over four consecutive days in July 2025, the government sold 512.84 Bitcoin worth $59.47 million through transfers to Binance exchange.

The sales came as Bitcoin climbed from $108,000 to over $122,000, representing strategic profit-taking rather than abandoning cryptocurrency. Despite these recent sales, Bhutan still holds 11,411 Bitcoin worth approximately $1.4 billion, maintaining its position as a major sovereign holder.

Earlier sales included $66.55 million worth of Bitcoin in October 2024 and another $33.5 million in November 2024. Over the past year, Bhutan has sold approximately 2,262 Bitcoin across six major transactions, bringing in over $200 million with an average selling price of $88,612.

Bhutan’s state-owned investment company, Druk Holdings and Investments, operates six cryptocurrency mining facilities across the mountainous terrain, with a seventh under construction.

The government began mining Bitcoin in 2019 when prices hovered around $5,000. Since then, Bhutan has mined over 13000 Bitcoin since the launch of the program, making it one of the most successful sovereign cryptocurrency programs worldwide.

“It’s just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it,” Prime Minister Tshering Tobgay told Al Jazeera in March 2025.

Bhutan’s competitive advantage lies in its abundant hydroelectric resources. The country runs entirely on hydropower, with rivers fed by Himalayan glaciers providing 3.5 gigawatts of current capacity and potential to expand to 33 gigawatts.

Unlike most Bitcoin mining operations that rely on fossil fuels, Bhutan’s facilities operate with zero carbon emissions. The country maintains its status as carbon-negative, meaning its forests absorb more carbon dioxide than the nation produces.

The seasonal nature of hydropower works perfectly for Bitcoin mining. During summer months, increased water flow generates surplus electricity that would otherwise go unused. Instead of exporting this excess power to India at low rates, Bhutan converts it into valuable cryptocurrency.

In 2023, Bhutan partnered with Singapore-based Bitdeer Technologies to create a $500 million investment fund for expanding mining operations. The first phase involved a 100-megawatt facility in Gedu that began operations with 30,000 mining machines.

A second facility in Jigmeling will add 500 megawatts of capacity when it becomes fully operational in 2026. Combined, these facilities will mine approximately 11-12 Bitcoin daily, generating $880,000 to $960,000 in daily revenue at current prices.

The partnership allows Bhutan to expand without financial risk, as Bitdeer raises all necessary funds while Bhutan provides land, infrastructure, and electricity. The country earns revenue through power sales, land leases, profit sharing, and taxes paid in US dollars.

The cryptocurrency revenues have provided crucial support for Bhutan’s government finances. In 2023, officials sold $100 million worth of Bitcoin to double civil servant salaries, helping address a brain drain crisis.

The strategy worked. Civil servant resignations dropped dramatically from 1,900 in the first quarter of 2023 to just 500 in the same period of 2024. Bitcoin revenues now fund healthcare, environmental programs, and primarily government salaries.

“We have used Bitcoin to provide free healthcare, for environment, but these are minor. The main use of Bitcoin has been to finance the salaries of public servants,” Prime Minister Tobgay explained.

Bhutan’s success demonstrates how smaller nations can leverage renewable energy resources to participate in the global digital economy while maintaining environmental commitments. As Bitcoin reaches new price highs, Bhutan’s strategic approach of mining with clean energy and selling during price peaks provides a sustainable model for other countries considering cryptocurrency adoption.