The recent focus of the market has been on the United States’ strategic Bitcoin reserve. However, in fact, some countries have already incorporated Bitcoin into their policy planning, seeking to strengthen their fiscal structure and promote economic development through mining or holding Bitcoin. Bhutan is one of them.
Bhutan has been using its abundant hydroelectric 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. Its holdings rank fifth among all countries, only behind the United States, China, the United Kingdom, and Ukraine.
During a recent interview with Al Jazeera, Bhutan’s Prime Minister Tshering Tobgay described Bitcoin as Bhutan’s “strategic reserve” and believed that the world will inevitably move towards using and trading Bitcoin, just like other currencies. He also explained how the government utilizes the Bitcoin reserves for the benefit of the people.
The video points out that for a small country like Bhutan, it is difficult to engage in large-scale manufacturing or agriculture, and almost all food relies on imports. The choice for economic development is limited, and Bitcoin mining fills a critical income gap for Bhutan.
Ujjwal Dahal, the CEO of Druk Holding & Investments (DHI), the state-owned investment company of 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 facilities are associated with the mining company Bitdeer. In May 2023, DHI partnered with Bitdeer to seek investors for a $500 million fund, with the goal of establishing a zero-carbon emissions digital asset mining business using Bhutan’s abundant hydroelectric resources. Shortly after, Bitdeer announced the completion of a 100-megawatt (MW) facility in the first phase of the project. In April 2024, Bitdeer expressed 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 such as Bitcoin (BTC), Ethereum (ETH), and BNB, among other cryptocurrencies, in its strategic reserves to enhance the region’s economic resilience. Source
Related reports: “Bhutan’s Sovereign Wealth Fund Confirms Involvement in Bitcoin Mining Business Since Bitcoin was worth $5,000” “Tokyo Electric Power Company Subsidiary Uses Surplus Green Energy to Mine Bitcoin, Expected to Promote More Renewable Energy Introduction” “Despite IMF Pressure, Salvadoran President Declares ‘Will Not Stop’ Buying Bitcoin”
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