The Asian country’s strategy involves using excess hydroelectric power for state-funded mining operations: over 13,000 bitcoins in reserve.
According to data from Arkham Intelligence, Bhutan holds 13,029 BTC, equivalent to approximately $780 million, accumulated through state-funded mining operations, making it the fourth largest governmental holder of bitcoin. The nation’s bitcoin reserves are managed by its national investment arm, Druk Holdings (DHI).
Unlike other states that acquire bitcoin through asset seizures, Bhutan has accumulated its reserves through mining operations that leverage the country’s hydroelectric resources. These operations use excess hydroelectric power, prioritizing domestic energy needs.
The recently identified wallet suggests regular receipts of block rewards about once a day, ranging from 1 to 5 BTC. According to previous reports, Bhutan began mining when the price was around $5,000. In 2023, the country expanded its mining capacity through a partnership with Bitdeer Technologies, increasing its operations to 600 megawatts.
It is expected that Bhutan’s gross domestic product (GDP) will reach $3 billion by the end of 2024, meaning that its reported bitcoin reserves represent about a quarter of its GDP.
