Crypto News – Bhutan Accumulates Over $780 Million in Bitcoin: A Deep Dive into Druk Holdings’ Strategy

Crypto News – Bhutan’s Bitcoin Holdings: The Fourth Largest State-Owned Reserve

Crypto News – Bhutan, a small Himalayan nation with a population of under 1 million, has amassed more than $780 million in Bitcoin (BTC), which constitutes nearly one-third of its Gross Domestic Product (GDP). This accumulation is attributed to the country’s state-owned entity, Druk Holdings, which has been heavily involved in Bitcoin mining operations. These mining activities are closely associated with Bitdeer, a company expanding its mining infrastructure in Bhutan with a goal of achieving 600 megawatts (MW) of capacity by 2025.

Druk Holdings’ Strategic Investment in Digital Assets

The acquisition of Bitcoin is part of Druk Holdings’ broader strategy to diversify its revenue streams. Recent activity from Druk Holdings’ wallets shows significant deposits and withdrawals, including large transactions with crypto exchanges like Kraken. According to on-chain analytics tool Arkham, Bhutan’s Bitcoin holdings are among the largest state-owned reserves globally, only behind a few others.

Bitdeer’s Role in Bhutan’s Mining Expansion

Bitdeer, a Singapore-based mining giant, has played a crucial role in Bhutan’s Bitcoin mining sector. In early 2023, Bitdeer partnered with the Bhutanese government to set up cryptocurrency mining operations, raising over $500 million for the venture. The company initially established a 100 MW mining facility and announced plans to expand the capacity to 600 MW by 2025.

Economic Context and Druk Holdings’ Broader Strategy

Bhutan, which is smaller than Switzerland, has a limited economic diversification with primary reliance on hydropower, tourism, and agriculture. Its GDP was just under $3 billion in 2022. Despite its small size, Bhutan’s Druk Holdings is making strategic investments in various sectors, including digital assets, hydropower projects, and metaverse ventures, to boost national revenue.

Recent Bitcoin Transactions and Market Impact

Druk Holdings’ Bitcoin wallets have shown increased activity recently, including multiple transactions from Foundry and other unidentified addresses. Notably, in early July, Druk Holdings sent over $25 million worth of BTC to crypto exchange Kraken, likely for sale. This transaction highlights Bhutan’s active role in the global cryptocurrency market.

FAQ: Bhutan’s Bitcoin Holdings and Mining Operations