The Royal Government of Bhutan has made headlines in the cryptocurrency world as it was revealed that they hold a significant amount of Bitcoin (BTC) in their wallets. According to data obtained by Arkham Intelligence, Bhutan holds 13,029 Bitcoin, which is valued at around $755 million at current market prices. In addition to Bitcoin, the wallets associated with the Himalayan kingdom also hold 656.013 Ethereum (ETH), worth approximately $1.5 million.
Bhutan’s Bitcoin holdings place them in fourth position among governments in terms of Bitcoin ownership. As of August, governments collectively held 2.2% of Bitcoin’s total supply. The United States leads the pack with 213,246 BTC, followed by China with 190,000 BTC. Bhutan surpasses countries like El Salvador, known for their Bitcoin adoption, but falls short of the United Kingdom’s Bitcoin holdings, which stand at 61,000 BTC.
Interestingly, Bhutan’s Bitcoin holdings are not the result of confiscations by authorities, but rather stem from the country’s Bitcoin mining initiatives. These mining activities are overseen by Druk Holding & Investments, a state-owned investment arm of the government.
Bhutan has been involved in Bitcoin mining for several years, initially keeping their efforts under wraps. In 2023, the country expanded its mining operations with the establishment of four mining sites powered by hydroelectric plants. On-chain data reveals that Bhutan’s government wallets began receiving Bitcoin as early as February 2021.
In a significant development, Bitdeer Technologies Group, a Bitcoin cloud mining and mining services company, partnered with Bhutan in 2023 to set up a mining data center in the region. This facility commenced operations in July of the same year. The collaboration between Bitdeer and Druk Holding aims to increase Bhutan’s Bitcoin mining capacity by sixfold, with plans to reach 500 megawatts by the first half of 2025, as reported by Bloomberg.
Bhutan’s foray into Bitcoin mining showcases the country’s proactive approach towards embracing emerging technologies and diversifying its economic activities. With significant holdings in Bitcoin and Ethereum, Bhutan is positioning itself as a key player in the ever-evolving cryptocurrency landscape.