Recently, the focus of 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. Bhutan is one of them.
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 about 1.15 billion US dollars. Its holdings rank fifth among all countries, second only to the United States, China, the United Kingdom, and Ukraine.
Bhutan’s Prime Minister, Tshering Tobgay, described Bitcoin as Bhutan’s “strategic reserve” in a recent interview with Al Jazeera, and believes that the world will inevitably move towards using and trading Bitcoin, just like other currencies. He also explained how the government uses Bitcoin reserves to benefit its citizens.
The video points out that for a small country like Bhutan, it is difficult to carry out large-scale manufacturing or agriculture, with almost all food relying on imports. The options for economic development are limited, and Bitcoin mining fills a crucial income gap for Bhutan.
Ujjwal Dahal, CEO of Bhutan’s state-owned investment company Druk Holding & Investments (DHI), stated in an interview that the development of Bitcoin and other new technologies is crucial for economic development. He said,
Bhutan’s Bitcoin mining facility is associated with the mining company Bitdeer. In May 2023, DHI partnered with Bitdeer to seek investors for a fund worth 500 million US dollars, with the goal of using Bhutan’s abundant hydropower resources to establish a zero-carbon digital asset mining business. Shortly thereafter, Bitdeer announced that the first phase of the project had completed a 100-megawatt (MW) facility. In April 2024, Bitdeer stated its 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, to enhance the economic resilience of the region.
Related reports: “Bhutan’s Sovereign Wealth Fund Confirms Involvement in Mining Business Since Bitcoin Reached $5,000” “Tokyo Electric Power Subsidiary Uses Surplus Green Energy to Mine Bitcoin, Expected to Promote More Adoption of Renewable Energy” “Despite IMF Pressure, Salvadoran President Says ‘Will Not Stop’ Buying Bitcoin”