The small South Asian nation of Bhutan has quietly amassed a significant position in bitcoin. According to a report from Arkham Intelligence, Bhutan currently holds 13,011 bitcoin, valued at approximately $750 million. This places Bhutan fourth globally among countries with the largest bitcoin reserves.
Bitcoin Mining by Druk Holdings
Unlike many countries, such as the U.S. and China, which acquired their bitcoin through seizures related to illegal activities like the Silk Road and PlusToken scams, Bhutan has taken a different approach. The Buddhist kingdom has accumulated its digital wealth through bitcoin mining. These operations are run by Druk Holdings, Bhutan’s state investment fund.
Bhutan’s abundant hydroelectric power makes it an ideal location for environmentally friendly bitcoin mining. Hydropower is not only plentiful in Bhutan but also a renewable energy source, meaning the country’s mining activities are not reliant on fossil fuels.
In May 2023, Bhutan partnered with Bitdeer, a leading bitcoin mining company, to establish a large-scale, eco-friendly mining farm. Initially launched with a 100-megawatt capacity, this farm is expanding to 600 megawatts, significantly boosting Bhutan’s mining capabilities.
Bhutan vs. Other Countries
With 13,011 bitcoin, Bhutan now holds more than countries like El Salvador, which is known for its pro-bitcoin stance but only has 5,800 bitcoin in its treasury. The U.S. and China remain the largest holders, with 213,246 BTC and 190,000 BTC, respectively. The U.S. acquired much of its bitcoin from the Silk Road marketplace seizure, while China’s reserves were gained through the crackdown on the PlusToken scam.
Eco-Friendly Bitcoin Mining
Bhutan’s strategic focus on sustainable bitcoin mining sets it apart in the crypto industry. While the sector is often criticized for its high energy consumption and environmental impact, Bhutan demonstrates that renewable energy sources, like hydropower, can play a key role in making mining operations more eco-friendly.
Future Impact
It’s unclear what Bhutan’s exact plans are for its substantial bitcoin reserves, but it highlights how even smaller nations can play a significant role in the global crypto market. With its ongoing mining expansions and stable access to renewable energy, Bhutan could potentially become an even more prominent player in the future.
Bhutan’s impressive 13,011 BTC reserve ranks it among the top bitcoin-holding nations. By leveraging its vast hydropower resources, Bhutan has found a strategic and environmentally friendly way to participate in the bitcoin market. This shows that with smart investments and a focus on sustainability, even a small country can make a significant impact in the crypto world.
