• Bhutan, a Himalayan nation with fewer than 1 million people, has accumulated over $780 million in bitcoin, representing nearly a third of its GDP, through mining operations run by state-owned Druk Holdings.
  • The mining operations are linked to Bitdeer, which has been expanding mining facilities in the country and aiming for a 600 megawatt capacity by 2025.
  • Bhutan’s investment in digital assets is part of a broader strategy by Druk Holdings to diversify revenue streams, with recent wallet activity showing both deposits and withdrawals, including significant transactions with exchanges like Kraken.

As a seasoned crypto investor with over two decades of experience under my belt, I find Bhutan’s foray into Bitcoin mining and accumulation truly fascinating. Being someone who’s seen the rise and fall of countless digital currencies, it’s refreshing to see a nation as small yet progressive as Bhutan take such a bold step.


A small, landlocked country sandwiched between India and China has accumulated bitcoin holdings valued at over $780 million in recent years, which is equivalent to approximately one-third of its total economic output (GDP), making it the fourth largest state-owned Bitcoin reserve as reported by Arkham’s on-chain analytics tool.

Located within the majestic Himalayas, Bhutan prioritizes the happiness of its nearly 900,000 residents over monetary wealth as a key indicator of national prosperity. Distinctively, it is the second country, following El Salvador, to incorporate Bitcoin into its economy, specifically within their state-owned Druk Holdings investment fund.

Arkham stated in a recent post that Bhutan has set up Bitcoin mining centers across various sites, with the largest one being on the former location of the Education City project. Unlike many governments, Bhutan’s Bitcoin (BTC) holdings are not from confiscated assets but rather from an increase in Bitcoin mining activities, which have significantly grown since early 2023.

As a researcher delving into this topic, I’ve come across mines that seem to be connected with the mining giant, Bitdeer (BTDR). In the year 2023, this Singapore-based corporation announced its plans to collaborate with the Bhutan government for setting up cryptocurrency mining operations in Southeast Asia. The venture required a substantial investment of over $500 million. Not long after, Bitdeer declared the construction of a 100 megawatt (MW) facility, marking the initial phase of their project.

In April 2024, Bitdeer said it was working on expanding Bhutan’s mining capacity to 600MW in 2025.

Located smaller than Switzerland, Bhutan is characterized by limited economic diversification and a fledgling private sector. The country primarily depends on hydroelectric power, tourism, and agriculture for its income sources. In terms of Gross Domestic Product (GDP), which measures the total worth of all goods and services produced within the nation, it amounted to approximately $3 billion in 2022, roughly half that of the Maldives.

However, Druk is actively venturing into multiple fields to bolster the nation’s financial resources. Their website highlights “digital assets” as a key concentration within their tech-centric investment plan, encompassing hydropower initiatives and virtual realms like metaverses.

Over the last few weeks, the Druk wallets monitored by Arkham have displayed a high level of transactional activity, with both deposits and withdrawals happening frequently. Interestingly, these wallets have received approximately 2 BTC on multiple occasions from a miner known as Foundry, as well as other undisclosed Bitcoin addresses.
Occasionally, it has transferred Bitcoin to different wallets and occasionally to cryptocurrency exchanges; for instance, a transaction in early July revealed a substantial amount (over $25 million) of BTC being moved to the platform Kraken, possibly for sale.

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2024-09-17 11:40