Bhutan Doubles Civil Servant Salaries With $100 Million Bitcoin Sale

Bhutan, a small landlocked country nestled in the Himalayas, has embarked on an unusual economic strategy: mining Bitcoin. This move is part of a broader effort to leverage the country's abundant hydropower resources and generate additional revenue to support its civil servants and bolster its economy. The country's decision to engage in Bitcoin mining is particularly noteworthy given its commitment to environmental sustainability and Gross National Happiness, a holistic measure of well-being that prioritizes social and environmental factors over purely economic indicators.

The mountainous terrain of Bhutan provides an ideal setting for Bitcoin mining operations. The country's hydropower plants, which generate electricity from the flow of water through turbines, offer a clean and renewable energy source. This is crucial for Bitcoin mining, which is an energy-intensive process. By utilizing its hydropower resources, Bhutan can mine Bitcoin without significantly increasing its carbon footprint, aligning with its environmental goals.

In 2023, Bhutan sold $100 million worth of Bitcoin to double civil servant salaries, curbing resignations in a workforce that had been rapidly thinning out. The revenue generated from mining can be used to pay civil servants, providing a stable income for government employees. This is particularly important in a country where the public sector plays a significant role in the economy. Secondly, the proceeds from Bitcoin mining can be reinvested into the economy, supporting infrastructure development and other public services. This can help to diversify Bhutan's economy, which has traditionally relied heavily on hydropower exports and tourism.

However, the decision to mine Bitcoin is not without its challenges. The volatility of cryptocurrency markets poses a risk to the stability of the revenue generated from mining. Additionally, the regulatory environment for cryptocurrencies is still evolving, and there is uncertainty about how governments around the world will respond to the growing use of digital currencies. Despite these challenges, Bhutan's foray into Bitcoin mining represents a bold and innovative approach to economic development, one that leverages the country's unique resources and values.

Bhutan is also planning for the future with projects like the Gelephu Mindfulness City—a sustainable urban hub meant to balance economic growth with cultural preservation and ecological harmony. The approach is measured, intentional, and deeply Bhutanese. While global superpowers argue over-regulation and adoption, Bhutan is simply doing the work—quietly stacking Bitcoin and building resilience. It’s a gamble, sure. But for a nation where brain drain, economic fragility, and limited industrialization are urgent problems, this could be the lifeline that works.

And if it does? Bhutan won’t just be the world’s happiest country—it might just be its smartest. The country also holds Ethereum and LinqAI, though those make up a smaller portion of its portfolio. As of April 2025, Bhutan’s crypto holdings total more than $600 million—roughly 30% of its GDP. Skeptics point to the volatility of crypto markets, but Bhutan has an edge: eco-friendly infrastructure and cool climate conditions that reduce energy needs for mining. And thanks to its policy of maintaining at least 60% forest cover, it’s one of the few countries mining Bitcoin without compromising its environmental values.