Bhutan Unveiled as Fourth Largest Government Bitcoin Holder

Key Takeaways:

• Bhutan owns 13,011 BTC worth approximately $780.49 million.
• The country is the fourth-largest government Bitcoin holder, according to Arkham Intelligence.
• Bhutan's Bitcoin comes from mining operations, not law enforcement seizures.

Arkham Intelligence, a public data company, has identified the small South Asian nation of Bhutan as the fourth-largest government holder of Bitcoin, with holdings of 13,011 BTC valued at around $780.49 million. 

This marks the first public disclosure of the country's cryptocurrency assets.

Bhutan's Unique Approach to Bitcoin Acquisition

Unlike many other governments that have acquired Bitcoin through law enforcement seizures, Bhutan's holdings stem from its mining operations. 

These efforts, conducted by the kingdom's investment arm, Druk Holdings, have been steadily growing since early 2023.

Arkham's investigation uncovered a network of Bitcoin mining facilities across Bhutan, with the largest operation situated on the repurposed grounds of the former Education City project.

The company corroborated its findings using time-lapse satellite imagery of facility construction, aligning with the timeline of on-chain mining activity.

Bhutan has constructed Bitcoin mining facilities in multiple locations, with the largest being on the site of the now-defunct Education City project.

We were able to corroborate the timeline of on-chain mining activity with time-lapse satellite imagery of facility construction. pic.twitter.com/mS6iE8DmTc

— Arkham (@ArkhamIntel) September 16, 2024

Bhutan's Bitcoin mining operations are uniquely positioned to leverage the country's abundant hydroelectric resources. 

The kingdom on the Himalayas has established four different mining sites powered by hydroelectric plants, showcasing a commitment to sustainable cryptocurrency mining practices.

While Bhutan had been mining Bitcoin for several years in relative secrecy, on-chain data indicates that wallets tied to the Bhutanese government began receiving BTC as early as February 2021. 

The country's efforts gained significant momentum in 2023 with the expansion of its mining infrastructure.

Bhutan's Partnerships and Global Context of Government Bitcoin Holdings

In 2023, Bhutan's Bitcoin mining attracted the attention of Bitdeer Technologies Group, a prominent Bitcoin cloud mining and mining services company. 

Bitdeer announced a mining data center that began operations in July of that year, marking a significant step in Bhutan's cryptocurrency journey.

In April 2024, Bitdeer partnered with Druk Holding to increase Bhutan's Bitcoin mining capabilities. This collaboration aims to boost mining capacity in the region sixfold, reaching 500 megawatts by the first half of 2025.

Moreover, Bhutan's emergence as a major Bitcoin holder places it in an elite group of nations investing in cryptocurrency. 

While countries like the United States, China, and the United Kingdom have acquired large Bitcoin holdings primarily through law enforcement seizures, Bhutan's approach to direct investment through mining operations sets it apart.

The United States leads the government with Bitcoin holdings of 207,189 BTC (worth over $13.4 billion), followed by China, which has approximately 190,000 BTC ($12.6 billion). 

The United Kingdom is estimated to hold around 61,000 BTC ($3.9 billion), while Ukraine holds 46,351 BTC. 

Meanwhile, El Salvador, a South American country known for adopting Bitcoin as legal tender, currently holds 5,748 BTC, valued at $397 million.