Bitcoin and the Himalayas: How Bhutan Became a Crypto Powerhouse

The tiny Himalayan kingdom of Bhutan has quietly amassed an eye-popping stash of 13,011 Bitcoin (BTC) worth over $780 million—almost one-third of its entire gross domestic product (GDP). According to on-chain analytics tool Arkham, this move places Bhutan as the fourth-largest state-owned Bitcoin holder in the world.

Source: Arkham Intelligence

For a nation nestled between India and China, Bhutan’s approach to wealth is as unique as its idyllic landscape. Known for prioritizing the happiness of its less-than-a-million citizens over conventional economic metrics, Bhutan has officially added Bitcoin to its portfolio, following El Salvador’s lead. However, the kingdom’s BTC stash comes not from asset seizures like some countries but from an ambitious and rapidly expanding Bitcoin mining operation—powered by hydropower.

At the heart of this operation is the now-defunct Education City project, where state-owned Druk Holdings fund has transformed the site into the country’s largest Bitcoin mining facility. This operation seems to be in partnership with Bitdeer, a Singapore-based mining giant, which is driving Bhutan’s expansion into the cryptocurrency world.

Bitdeer’s impact has been massive: in 2023, the company raised over $500 million to fuel a carbon-neutral mining initiative in Bhutan. And by 2024, they are looking to boost the kingdom’s mining capacity to 600 megawatts, making the tiny nation a true powerhouse in the crypto space. Bhutan’s digital gold rush comes at an opportune time, too—BTC prices have soared far beyond the $5,000 mark when the country began mining back in 2019.

It’s worth noting that Bhutan’s Bitcoin holdings don’t just sit idly in cold wallets. Arkham’s data shows active deposits and withdrawals from Druk’s wallets, with some funds even finding their way to crypto exchanges like Kraken. In one July transaction alone, Bhutan sent a cool $25 million worth of BTC to be sold— impressive for a country whose entire GDP is around $3 billion.

Despite Bhutan’s size—it’s smaller than Switzerland—this crypto mining operation is helping diversify an economy otherwise reliant on hydropower, tourism, and agriculture. The kingdom’s tech-forward investment strategy, spearheaded by Druk Holdings, lists “digital assets” as a top focus alongside hydropower projects and even metaverse ventures. Bhutan’s bold move into the crypto world may just be the beginning of a new chapter in its development.

While El Salvador made global headlines for becoming the first country to adopt Bitcoin as legal tender, Bhutan’s quiet climb to crypto fame is just as remarkable.

The Central American country currently holds 5,875 BTC—worth around $331 million—less than half of Bhutan’s total stash. But unlike El Salvador’s high-dollar BTC buys, Bhutan mined its Bitcoin at a fraction of the price, creating a strong foundation for future profits.

With both nations using renewable energy to power their mining efforts—El Salvador harnessing geothermal energy from volcanoes and Bhutan relying on its abundant hydropower—the comparison between the two is fascinating. Bhutan may have fewer people than El Salvador (790,000 vs. 6.3 million), but in the world of Bitcoin, size isn’t everything.

As the kingdom looks to further ramp up its mining capabilities and solidify its place in the cryptocurrency world, Bhutan’s unique blend of traditional values and cutting-edge technology might just make it the happiest (and richest) little nation in the crypto game.