Bhutan, a picturesque landlocked nation situated between India and China, has amassed Bitcoin (BTC) holdings valued at over $780 million in recent years, according to data from the on-chain analytics tool Arkham. This amount is almost one-third of Bhutan’s Gross Domestic Product (GDP), and it ranks as the fourth-largest state-owned BTC reserve globally. With a population of fewer than 900,000, Bhutan gauges national well-being by citizen happiness, rather than traditional economic measures. The country became the second after El Salvador to officially hold Bitcoin, using it as part of its state-owned Druk Holdings fund.

Bhutan’s involvement with Bitcoin extends beyond simply holding the cryptocurrency. The country has established Bitcoin mining operations, with its largest facility located on the former site of the defunct Education City project. According to Arkham, Bhutan’s Bitcoin does not come from asset seizures, as seen in other nations, but from extensive mining operations that have significantly expanded since early 2023. These efforts are likely linked to Bitdeer, a Singapore-based cryptocurrency mining company. In 2023, Bitdeer collaborated with Bhutan’s government to set up cryptocurrency mining projects in Southeast Asia, raising over $500 million to fund the initiative. The first phase saw the creation of a 100 megawatt (MW) mining facility, and by April 2024, Bitdeer announced plans to increase Bhutan’s mining capacity to 600MW by 2025.

Bhutan’s economy, which heavily relies on hydropower, tourism, and agriculture, had a GDP of under $3 billion in 2022. The country lacks significant economic diversification, but Druk Holdings is exploring other opportunities to expand its revenues. These include digital assets, technology-driven investments, and metaverse projects. Data shows frequent Bitcoin transactions in Druk’s wallets, including deposits from mining sources like Foundry and large BTC transfers to exchanges such as Kraken.

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