Bhutan Quietly Amasses $780 Million in Bitcoin, Nearly One-Third of Its GDP

Bhutan Quietly Amasses $780 Million in Bitcoin, Nearly One-Third of Its GDP

A small, landlocked nation nestled between India and China has quietly amassed bitcoin (BTC) holdings worth over $780 million, equivalent to nearly one-third of its gross domestic product (GDP), according to on-chain analytics platform Arkham. This makes Bhutan’s bitcoin reserve the fourth-largest state-owned stash in the world.

Bhutan, a Himalayan kingdom with fewer than 900,000 inhabitants, measures its success not by wealth but by the happiness of its citizens. The nation is only the second, after El Salvador, to officially hold BTC, with its holdings managed through the state-owned Druk Holdings fund.

“Bhutan has established Bitcoin mining facilities at multiple locations, with the largest situated on the former site of the Education City project,” Arkham revealed in a post on X. “Unlike many governments, Bhutan’s bitcoin is not acquired through law enforcement asset seizures but instead from its mining operations, which have significantly expanded since early 2023.”

These mining efforts are likely connected to Bitdeer (BTDR), a major player in the industry. The Singapore-based company announced in 2023 that it was collaborating with Bhutan’s government to develop large-scale cryptocurrency mining in Southeast Asia, securing over $500 million for the venture. Soon after, Bitdeer completed the first phase of its project, building a 100-megawatt (MW) facility in Bhutan. In April 2024, Bitdeer revealed plans to scale the country’s mining capacity to 600 MW by 2025.

Despite being smaller than Switzerland, Bhutan faces significant economic challenges. Its economy, valued at just under $3 billion in 2022—about half that of the Maldives—relies heavily on hydropower, tourism, and agriculture. Private sector development is still in its early stages, and the country lacks significant diversification.

However, Druk Holdings is diversifying Bhutan’s investments, with digital assets taking center stage. The fund’s website lists digital assets alongside hydropower and metaverse projects as part of a technology-focused strategy to boost the nation’s income.

Data from Arkham shows a high volume of bitcoin deposits and withdrawals from Druk’s wallets in recent weeks. The fund has received multiple transactions from Foundry, another Bitcoin miner, and other anonymous addresses. In early July, Druk moved more than $25 million worth of BTC to Kraken, a cryptocurrency exchange, likely for sale.