Bhutan's Bitcoin Reserve Surges 4000% to 40% of GDP

Bhutan has quietly emerged as a significant player in the global Bitcoin mining landscape, accumulating over 12,000 BTC since 2020. This reserve, valued at approximately $1.3 billion, now constitutes nearly 40% of the country’s total GDP. The Royal Government of Bhutan, through its state-owned investment arm, Druk Holding and Investments (DHI), has leveraged its abundant hydropower resources to build one of the largest national Bitcoin reserves without publicly announcing it.

Bhutan’s Bitcoin mining operations began in 2020 with a small setup near the Dochula Pass. Despite initial challenges, such as overheating machines triggering security alarms, the project quickly scaled up. By 2022, the country had multiple state-owned mining installations powered by green energy and cooled by the mountain climate, allowing for efficient and sustainable operations. The mining equipment is strategically located in remote, cooler regions with access to reliable hydropower grids, keeping operational costs low.

The initiative was driven by King Jigme Khesar Namgyel Wangchuck, who ordered his government to find new ways to invigorate Bhutan’s economy in the wake of the pandemic. The country’s natural advantage in renewable hydropower made it an ideal location for energy-intensive mining operations. The government’s swift action and strategic planning have resulted in a significant economic impact. Former Prime Minister Tshering Tobgay noted that the proceeds from Bitcoin mining have financed civil servants’ increments, highlighting the concrete economic benefits of the venture.

Bhutan’s Bitcoin reserve has also diversified the country’s economy, reducing its dependence on hydropower exports, which have been affected by regional climate shifts. The mining operations have opened a new source of foreign currency, crucial for an economy reliant on imports for key goods. The government established Green Digital to oversee the operations, ensuring compliance and oversight. Despite some complaints about transparency, the overall economic benefits have been widely recognized.

Bhutan’s involvement in Bitcoin extends beyond mining. The country has begun trialing the practical uses of crypto in everyday life. In May 2025, a service was launched allowing citizens to pay with over 100 cryptocurrencies, including booking flights, hotels, and even purchasing visas with digital assets. The Gelephu Mindfulness City, a futuristic development project, is being built around the integration of blockchain technology, with digital assets playing a foundational role in its commercial and governmental infrastructure.

As of mid-2025, Bhutan’s Bitcoin reserve places it in the top three among sovereign holders, behind the United States and El Salvador. The United States holds over 200,000 BTC, mainly seized through law enforcement actions, while El Salvador has purchased approximately 5,750 BTC under its government program. Bhutan’s method of acquiring Bitcoin through direct mining sets it apart, avoiding market volatility and ensuring a cleaner source of BTC unlinked to tainted coins.

Bhutan’s strategic approach to Bitcoin mining and integration reflects a forward-thinking vision for economic development. By leveraging its natural resources and embracing innovative technologies, the country has positioned itself as a leader in the global crypto landscape. The economic benefits and strategic value of Bhutan’s Bitcoin reserve underscore the potential of digital assets in driving sustainable growth and diversification.