Nestled in the Himalayas, the Buddhist kingdom of Bhutan has quietly emerged as a global leader in Bitcoin reserves. Since late 2020, the country has leveraged its abundant hydropower resources to mine digital gold, accumulating $1.3 billion worth of Bitcoin—equivalent to 40% of its GDP. This strategic move positions Bhutan as the third-largest Bitcoin reserve nation worldwide, trailing only the United States and China.
Harnessing Hydropower for Sustainable Bitcoin Mining
The Birth of Bhutan's Bitcoin Strategy
With a population of 800,000, Bhutan traditionally relied on hydropower, agriculture, and tourism for economic stability. However, the pandemic-induced tourism slump prompted King Jigme Khesar Namgyel Wangchuck (45) to explore technological solutions. Officials proposed Bitcoin mining—a process that validates transactions and adds new coins to the blockchain using energy-intensive computations.
By late 2020, Bhutan launched its first mining facility near the Dochula Pass, chosen for its proximity to power grids and snowy landscapes. By 2022, all four government-owned mining facilities were operational—just before Bitcoin’s price surged from under $10,000 to ~$100,000.
Why Bhutan Excels
- Cheap, Renewable Energy: Hydropower accounts for 99% of Bhutan’s electricity, making mining highly profitable.
- Cold Climate: Natural cooling reduces operational costs for mining rigs.
- Strategic Reserves: Bhutan treats Bitcoin as a digital gold reserve, per Druk Holding & Investments CEO Ujjwal Deep Dahal.
Bhutan’s Vision: A Green Digital Currency Hub
Economic Revival Through Crypto
In 2023, Bhutan sold $100 million of its Bitcoin holdings to fund a two-year civil servant pay raise. The country now aims to become a green digital currency hub by:
- Expanding hydropower-backed mining to create jobs and curb brain drain.
- Promoting clean-energy-mined cryptocurrencies (e.g., solar/wind-powered Bitcoin).
Global Rankings
| Rank | Country | Bitcoin Reserves |
|---|---|---|
| 1 | USA | $XX Billion |
| 2 | China | $XX Billion |
| 3 | Bhutan | $1.3 Billion |
FAQs: Bhutan’s Bitcoin Journey
1. How does Bhutan’s Bitcoin reserve compare to its GDP?
At $1.3 billion, Bhutan’s Bitcoin holdings equal 40% of its GDP—the highest ratio globally.
2. What makes Bhutan’s mining eco-friendly?
Bhutan uses 100% hydropower, avoiding fossil fuels common in other mining hubs.
3. Will Bhutan sell more Bitcoin?
While $100 million was sold in 2023, officials emphasize long-term holding as a value reserve.
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The Road Ahead
Bhutan’s fusion of sustainability and crypto innovation sets a blueprint for small economies. As Dahal notes, "We’re not just mining coins—we’re building a resilient digital future."