In a remarkable economic transformation, the Himalayan kingdom of Bhutan has emerged as the world’s third-largest government holder of Bitcoin, amassing a digital fortune worth approximately $1.3 billion — equivalent to nearly 40% of its GDP.
Since 2020, Bhutan has quietly scaled up its cryptocurrency mining operations, leveraging its abundant hydropower resources to fuel a sustainable and highly profitable venture. Managed by the state-owned Druk Holding & Investments (DHI) through its Green Digital arm, this initiative has positioned Bhutan as an unlikely powerhouse in the global crypto landscape, all while maintaining its commitment to environmental sustainability and Gross National Happiness.
A Crypto Treasure Trove
Bhutan’s Bitcoin reserves, totaling over 12,000 BTC, are held in a wallet managed by DHI, the government’s commercial investment arm. Unlike other nations, such as the United States, which have acquired Bitcoin through seizures, or El Salvador, which purchased BTC and adopted it as legal tender, Bhutan’s entire crypto portfolio comes from mining.
This strategic focus began in 2020, when DHI, under the leadership of CEO Ujjwal Deep Dahal, launched its first mining operation near Dochula Pass with just two computers. Despite early challenges, including overheating equipment that once triggered a security alarm, the program expanded rapidly. By 2022, four state-owned mining sites were operational, and satellite imagery now confirms at least six facilities across the kingdom, powered by Bhutan’s vast hydropower network.
The $1.3 billion in Bitcoin reserves represents a staggering 40% of Bhutan’s $3.4 billion GDP, making it one of the most crypto-exposed nations globally, trailing only the US and the UK in sovereign holdings. This milestone, first reported by blockchain intelligence firm Arkham and later confirmed by outlets like the Wall Street Journal, stems from Bhutan’s unique ability to harness surplus hydroelectric power, which accounts for 30% of its economy. The kingdom’s rivers, fed by Himalayan glaciers, provide 23,760 MW of feasible hydropower—enough to power a city like New York twice over—making it an ideal environment for energy-intensive Bitcoin mining with minimal environmental impact.
Economic Impact and Strategic Sales
Bhutan’s Bitcoin strategy has already delivered tangible benefits. In April 2025, then-Prime Minister Tshering Tobgay revealed in an Al Jazeera interview that the government sold $100 million worth of Bitcoin in 2023 to fund a doubling of civil servants’ salaries. This move aimed to curb the brain drain of young professionals, a persistent challenge for Bhutan’s small economy, which relies heavily on tourism (10% of GDP) and hydropower exports. The sale, executed on the Kraken exchange, went largely unnoticed domestically until local media reported the salary increases, highlighting the project’s low profile.
The initiative, driven by King Jigme Khesar Namgyel Wangchuck’s vision to modernize Bhutan’s economy post-COVID, has diversified the kingdom’s revenue streams at a time when tourism remains sluggish and hydropower exports face regional climate challenges. By partnering with Singapore-based Bitdeer Technologies, Bhutan secures USD payments for electricity, bolstering its foreign currency reserves while keeping mining costs low in remote, cool regions with reliable hydropower grids. This model, described by DHI’s CTO Jacques von Benecke as running “a few years ahead” of government digital initiatives, aligns with Bhutan’s ethos of sustainability and innovation.
A Discreet but Risky Venture
Despite its success, Bhutan’s Bitcoin program remains shrouded in secrecy, with many citizens unaware of the reserves until media coverage surfaced. Some officials have raised concerns about the lack of transparency in managing these funds, questioning how decisions about sales or holdings are made. Unlike El Salvador’s public embrace of Bitcoin, Bhutan’s approach has been deliberately low-key, possibly to avoid scrutiny or maintain economic stability amid Bitcoin’s volatility, which could shrink the reserves’ value if prices drop.
The kingdom’s strategy also carries risks. While hydropower ensures a green operation—avoiding the environmental criticism faced by fossil fuel-based mining elsewhere — Bitcoin’s price fluctuations could destabilize Bhutan’s economy, where 40% of GDP hinges on a single asset. Critics, including the International Monetary Fund, have warned that heavy crypto reliance could deter foreign investment or expose small nations to financial instability. Yet, with Bitcoin trading near all-time highs, Bhutan’s $1.3 billion reserve has already proven its worth, funding public sector reforms and signaling a long-term “HODL” strategy, as noted by Cointelegraph.
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Bhutan’s Crypto Blueprint
Bhutan’s Bitcoin success, managed by Green Digital under DHI, offers a model for developing nations. By leveraging renewable energy and strategic partnerships, the kingdom has turned digital mining into a cornerstone of its economy, contributing 25% to GDP alongside other tech ventures like a decentralized national identity platform. The program’s architect, Ujjwal Deep Dahal, a self-taught blockchain enthusiast, exemplifies Bhutan’s “smart nation” ethos, as articulated by King Wangchuck: “Being a small nation makes us a smart nation—out of necessity.”
As global interest in sovereign crypto reserves grows — evidenced by the US, El Salvador, and even Pakistan exploring Bitcoin strategies—Bhutan’s quiet revolution stands out. Its six mining farms, humming in the cool Himalayan air, have not only amassed a fortune but also redefined what’s possible for a nation prioritizing happiness over wealth. While concerns about transparency and volatility persist, Bhutan’s bold bet on Bitcoin has already paid dividends, proving that even a small kingdom can lead in the global digital economy.
