The recent focus in the market has been on the United States’ strategic reserve of Bitcoin. However, in fact, some countries have already incorporated Bitcoin into their policy planning, seeking to strengthen their financial structure and promote economic development through mining or holding Bitcoin. Bhutan is one of these countries.
Bhutan has been using its abundant hydropower resources for Bitcoin mining since at least 2019. According to BitBo’s Bitcoin Treasuries data, as of February 26, Bhutan holds a total of 13,029 Bitcoins, worth approximately $1.15 billion. Its holdings rank fifth among all countries, only behind the United States, China, the United Kingdom, and Ukraine.
Prime Minister Tshering Tobgay of Bhutan described Bitcoin as Bhutan’s “strategic reserve” in a recent interview with Al Jazeera, and he believes that the world will inevitably move towards using and trading Bitcoin, just like other currencies. He also explained how the government uses the Bitcoin reserves to benefit the citizens.
The video points out that for a small country like Bhutan, it is difficult to engage in large-scale manufacturing or agriculture. Almost all food is reliant on imports, and the choices for economic development are limited. Bitcoin mining fills the crucial income gap for Bhutan.
Ujjwal Dahal, CEO of Druk Holding & Investments (DHI), the government’s investment company in Bhutan, stated in an interview that the development of Bitcoin and other new technologies is crucial for economic development. He said:
Bhutan’s Bitcoin mining operations are related to the mining company Bitdeer. In May 2023, DHI collaborated with Bitdeer to seek investors for a $500 million fund, with the goal of using Bhutan’s abundant hydropower resources to establish a zero-carbon emissions digital asset mining business. Soon after, Bitdeer announced that the first phase of the project had completed a 100-megawatt (MW) facility. In April 2024, Bitdeer stated plans to expand Bhutan’s mining capacity to 600 MW by 2025.
In January of this year, Bhutan’s new special administrative region, Gelephu Mindfulness City (GMC), announced plans to include digital assets in its strategic reserves, such as Bitcoin (BTC), Ethereum (ETH), and BNB, among other cryptocurrencies, to enhance the economic resilience of the region. Source
Related reports: “Bhutan’s Sovereign Wealth Fund Confirms Involvement in Bitcoin Mining Business since BTC Price of $5,000” “Tokyo Electric Power’s Subsidiary Mines Bitcoin Utilizing Surplus Green Energy, Aiming to Promote More Renewable Energy Adoption” “Despite IMF Pressure, Salvadoran President Declares ‘Will Not Stop’ Buying Bitcoin”
