Bhutan has $780m in Bitcoin – report

Bhutan, a small, landlocked South Asian country between China and India, is one of the top nation-state Bitcoin holders globally according to a new report.

With a population of less than 800,000 people, this Buddhist country has 13,011 Bitcoin (BTC), worth around $780 million. Analysts at blockchain intelligence firm Arkham say this makes it the fourth-largest government BTC holding on their platform.

This is more than double that of El Salvador in Central America which has 5,875 BTC worth $331 million.

Where did Bhutan’s Bitcoin come from?

Bhutan’s holdings are particularly unique as they have been gained directly from mining operations. Most other governments come from legal asset seizures.

The mining is carried out by Druk Holdings, the country’s investment arm. It has multiple mining facilities and the biggest is at the site of the failed Education City project.

Bhutan has constructed Bitcoin mining facilities in multiple locations, with the largest being on the site of the now-defunct Education City project.

We were able to corroborate the timeline of on-chain mining activity with time-lapse satellite imagery of facility construction. pic.twitter.com/mS6iE8DmTc

— Arkham (@ArkhamIntel) September 16, 2024

Environmentally friendly mining is also something that sets Bhutan apart from the crowd. Bitcoin requires large amounts of energy to be mined. Producing that energy in the first place can create carbon emissions.

However, Bhutan’s facilities have run off of hydropower since 2019. This is more sustainable as it is harnessed from the natural flow of water.

Last year the country then raised $500 million with Bitdeer to fund fully carbon-neutral Bitcoin mining. By the middle of next year, it hopes to increase the capacity to from 100 to 600 megawatts.

Featured image credit: Dall-E 3

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