Now what is Bhutan’s Bitcoin journey? The Kingdom of Bhutan, a tiny country in the Indian subcontinent, shocked everyone by becoming one of the largest Bitcoin-holding nations in the world. This Thunder Dragon Kingdom took the crypto adoption game to another level by leveraging hydroelectric power resources in its crypto mining operations. When this secret was revealed, the whole world was stunned, and Bhutan received widespread praise for its innovative green crypto-mining techniques.
Bhutan, officially the Kingdom of Bhutan, is utilizing Bitcoin mining operations to boost its economic growth. It ranks among the top Bitcoin-holding nations globally and employs renewable hydropower resources in its mining operations. Through these mining efforts, it boosted its GDP growth by a staggering 25%.
Bhutan, which is known for its Gross National Happiness index, transformed its economic landscape by leveraging the power of cryptocurrencies. Now, this tiny nation is fostering happiness in its society through economic prosperity enabled by Bitcoin adoption.
If you want to know about Bhutan’s Bitcoin journey, then you are in the right place. Now, without wasting more time, let’s delve into the topic and explore some shocking facts about Bhutan’s Bitcoin journey.
Bhutan’s Extraordinary Crypto Journey
Bhutan is quite popular for adopting different approaches in every field. This small nation nestled in the Himalayas always focuses on the well-being of its citizens. That is why the nation prefers Gross National Happiness (GNH) to measure its success.
Similarly, Thunder Dragon has adopted a different approach from other nations and has paved its own path in Bitcoin adoption. It has been engaged in Bitcoin mining for years. However, its Bitcoin strategy was shrouded in secrecy until its crypto holdings were revealed.
Originally, this information was not publicly disclosed by the Bhutanese officials. The world witnessed Bhutan’s Bitcoin operation when everyone saw their multi-million-dollar portfolio and various satellite images that showed their mining facilities.
Bhutan’s Bitcoin journey started similarly to that of other governments, with caution. In 2024, the Royal Monetary Authority (RMA) issued a warning against the use of digital assets. However, despite these concerns, the seed of interest in Bitcoin has been germinated.
2021-2022: The Beginning
In 2021, Bhutan started expanding its Bitcoin mining operations. To support these mining operations, the nation imported various computing hardware. The country set up its ambitious Bitcoin mining operations in its capital, Thimphu, utilizing the infrastructure of a defunct $1 billion government megaproject called “Education City.”
The Thunder Dragon kingdom invested around $500 million in crypto mining projects from July 2021 to June 2023. The country’s sovereign holding company, Druk Holdings, has been engaging in mining activities since early 2021. Moreover, the on-chain data revealed that Druk received their first Bitcoin in February 2021, which also shows that they have been mining since then.
Besides all this, Bhutan was also involved with cryptocurrency lending platforms such as BlockFi, Celsius, and Hodlnaut. From 2021 to 2022, they sent and received over $817 million in cryptocurrency. However, these crypto lenders later filed for bankruptcy.
2023: Major Partnerships and Developments
2023 plays a crucial year for Bhutan’s Bitcoin journey. In May 2023, Bitdeer Technologies Group, a Singapore-based company, announced a partnership with Druk Holdings. The partnership aims to develop green crypto mining techniques, seeking a $500 million investment. The collaboration aims to foster the country’s Bitcoin mining operations using its abundant hydroelectric resources.
Besides this, the country began constructing a 100-megawatt crypto-mining data center in Gedu. It was the Bhutan’s first large-scale Bitcoin mining operation. The facility includes 30,000 mining machines capable of producing three to five Bitcoins per day.
2024: Bhutan Emerged as Largest Bitcoin Holder
In 2024, Bhutan garnered massive media attention across the globe amidst its multi-million-dollar crypto portfolio. At that time, Bhutan was holding 3,011 BTC, valued at approximately $780 million. These holdings represented a significant portion of the country’s GDP. This positioned the Thunder dragon kingdom as the fourth largest Bitcoin holder, behind only the U.S., China, and the U.K.
In the same year, Bhutan was generating approximately 55 Bitcoins valued at $3.6 million to 75 BTC worth $4.9 million every week from its mining operations. The on-chain data revealed that the Bhutan government is using mining pools such as AntPool, Braiins, and Foundry. For all these operations, the Thunder Dragon was utilizing eco-friendly hydropower resources.
Also, read this article to know about the top 10 largest corporate holders of Bitcoin.
Bhutan Economic Hub Plans of Strategic Crypto Reserve
On January 8, 2025, Bhutan’s new economic hub, called Gelephu Mindfulness City (GMC), announced that it plans to set up a crypto reserve that includes Bitcoin, Ether, and BNB. Through this initiative, GMC aims to strengthen the economy and leverage Bitcoin mining opportunities.
GMC has taken a different approach by planning to hold various blue-chip cryptocurrencies to facilitate easy transactions. This project will be distributed in phases and is anticipated to be completed in 21 years. As of February 2025, the country holds 13,029 Bitcoins, valued at $1.276 billion.
Through these mining operations and strategic reserves, Bhutan aims to diversify its income sources. The country also wants to enhance its tourism, hydropower-generated electricity sales, and agriculture through this initiative. With all these Bitcoin mining operations and investments, the country seeks to generate steady income and boost its economic growth.
Reasons Bhutan & Other Governments Considering Bitcoin as a Strategic Reserve
Bitcoin is increasingly becoming a mainstream asset with the emergence of Bitcoin ETFs and is now turning into a strategic reserve for the United States, Bhutan, and other countries. The king of crypto was initially introduced as a payment system created by Satoshi Nakamoto. However, over time, it has transformed into a hedge against inflation, a store of value, and a strategic reserve. Now, many nations are using it as a tool to enhance their economic situation by acquiring it directly or through the mining process.
In 2020, Bitcoin’s value was $29,000, gold was at $1,800, and the S&P stood at 3,700. Currently, Bitcoin has surpassed the $100k mark, gold is at $2,000, and the S&P is at 4,600. This data illustrates how Bitcoin has become the number one asset globally in terms of value. According to industry experts, Bitcoin may reach $120K by 2025.
Moreover, Bitcoin’s adoption by Bhutan and other developing countries has significant economic implications. These countries are adopting digital assets like Bitcoin to attract an influx of investments. Additionally, tourism in these nations will likely increase. Bitcoin also has geopolitical implications; governments now view it as a store of value and a strategic asset that could enhance their geopolitical standing.
Furthermore, adopting Bitcoin could transform the nation’s global trade relations by providing an alternative payment system that could update the traditional finance system.
Final Thoughts
Bhutan’s venture into Bitcoin mining serves as a testament to the entire world. This small country has shown larger nations how to innovate and leverage technology for economic growth. By harnessing its natural resources, Bhutan positions itself as a significant player in the cryptocurrency space.
Bhutan’s Bitcoin journey acts as a wake-up call for major countries worldwide, illustrating how a bit of innovation and the adoption of technology can boost the economy. Bhutan is now inspiring other nations to rethink their strategies regarding technology and sustainable development.
