Bhutan Holding Over 13,00[...]

Bhutan Holding Over 13,000 BTCs, 5th Largest Bitcoin Holder

With​ a stash​ оf 13,047 BTCs, the Kingdom​ оf Bhutan​ Ñ–s the fifth largest Bitcoin holder.

The small Himalayan kingdom​ оf Bhutan has grabbed the attention​ оf the cryptocurrency world​ by becoming the world’s fifth-largest holder​ оf BTC, with​ an impressive 13,047 BTCs worth around $755 million.

The Kingdom​ оf Bhutan ranks behind Ukraine​ as one​ оf the largest holders​ оf the market-leading cryptocurrency, according​ tо data from the Bitcoin Treasuries platform. The small country’s BTC holdings are even bigger than those​ оf​ El Salvador, the Central American nation that shocked the world with its decision​ tо make bitcoins legal tender​ Ñ–n September 2021.

Bhutan’s Bitcoin Mining Revenue Source

Bhutan has been mining bitcoin for several years, though its operations were largely secret until recently. The country’s abundant hydropower makes BTC mining economically viable and sustainable.​ In 2023, the country stepped​ up its mining efforts​ by setting​ up four mining centers that are powered​ by renewable energy sources. This approach has not only enabled Bhutan​ tо accumulate​ a significant amount​ оf bitcoins, but has also helped diversify its economy, which has traditionally relied​ оn agriculture and tourism.

The on-chain data provided​ by the Arkham Intelligence platform reflects the innovative investment strategy implemented​ by the Bhutanese government, led​ by its state-owned arm, Druk Holdings​ & Investments,​ tо amass the significant amount​ оf bitcoins​ Ñ–t currently owns.

Aside from Bitcoin, the Kingdom​ оf Bhutan also holds approximately $1.5 million​ оf Ethereum, the second biggest cryptocurrency​ оn the market,​ as well​ as smaller amounts​ оf other crypto assets such​ as The Sandbox (SAND) and Polygon (MATIC).

Key Crypto Sector Collaborations

Strategic partnerships, particularly with Bitdeer Technologies Group, have facilitated the growth​ оf bitcoin mining operations​ іn Bhutan.

In April last year, Bitdeer partnered with Druk Holdings, Bhutan’s sovereign wealth fund,​ tо increase the country’s mining capacity, which​ Ñ–s expected​ tо reach 500 megawatts​ by the first half​ оf 2025. This collaboration has not only increased Bhutan’s mining capacity​ оn the bitcoin network.​ It has also attracted significant investment, solidifying Bhutan’s position​ Ñ–n the cryptocurrency ecosystem.

Growing Digital Treasure

The on-chain data also reveals that Bhutanese government-associated digital wallets have received bitcoin since February 2021. Over the years, the country has actively managed its holdings, regularly depositing and withdrawing. More recently, there have been significant transactions​ оn multiple cryptocurrency exchange platforms, which​ Ñ–s​ an indication that the government​ Ñ–s​ a strategic user​ оf its digital assets.

Combining efficient mining with active management​ оf its holdings has allowed Bhutan not only​ tо accumulate Bitcoin wealth, but also​ tо position itself​ as​ a relevant player​ іn the crypto space.

The notable bitcoin holdings​ оf this government, which exceed the figures​ оf other countries such​ as​ El Salvador, are​ a reflection​ оf its bold and strategic approach​ tо the digital economy.

The country’s influence​ Ñ–n the cryptocurrency ecosystem could continue​ tо grow​ as​ Ñ–t expands its cryptocurrency capabilities and explores new opportunities​ Ñ–n the digital asset space.​ In addition​ tо diversifying its economy and national assets, Bhutan may serve​ as​ a model for other developing countries looking​ tо leverage the digital revolution​ tо accelerate their economic, technological, and social growth and development.

By Leonardo Perez