Bhutan now holds around 40% of its GDP in Bitcoin.

Bhutan now holds around 40% of its GDP in Bitcoin.

In a groundbreaking move, Bhutan has quietly amassed a significant Bitcoin (BTC) portfolio, positioning itself as the third-largest government holder of the cryptocurrency. According to data from Arkham Intel as of June 27, Bhutan has accumulated 12,062 BTC, valued at approximately $1.3 billion [1]. This substantial holding represents nearly 40% of the country's gross domestic product (GDP), underscoring Bhutan's deep integration into the crypto market [1].

The state-owned Druk Holding and Investments (DHI), Bhutan's commercial arm, manages these Bitcoin holdings. Ujjwal Deep Dahal, CEO of DHI, noted that Bhutan's abundant hydropower resources provided a strategic advantage for low-cost, sustainable Bitcoin mining [1]. This approach has allowed Bhutan to enter the crypto space with minimal environmental impact, distinguishing it from other nations with similar Bitcoin holdings.

Bhutan's Bitcoin holdings now surpass those of Ukraine and El Salvador, trailing only the United States and China in terms of on-chain government BTC reserves. In addition to its Bitcoin position, Bhutan also holds over $1 million in Ethereum (ETH), reflecting a diversification strategy within its broader crypto portfolio [1].

The implications of Bhutan's strategic Bitcoin holdings are far-reaching. For a country long known for prioritizing Gross National Happiness over GDP, this move signifies a recalibrated economic vision that blends sustainable energy, financial innovation, and sovereign digital reserves [1]. Bhutan's example is gaining traction globally, with India considering a Bitcoin reserve pilot as part of its national economic strategy [2].

India's ruling party, the Bharatiya Janata Party (BJP), has called for the country to explore a sovereign Bitcoin reserve. Pradeep Bhandari, a spokesperson for the BJP, proposed this initiative to address the lack of regulation in India's crypto sector and provide clarity and governance [2]. Texas has become the first U.S. state to fund a standalone Bitcoin reserve, with $10 million allocated for this purpose [2].

Bhutan's strategic Bitcoin holdings and India's consideration of a Bitcoin reserve pilot demonstrate a broader trend of global governments adopting sovereign crypto strategies. As these nations explore the integration of digital assets into their financial systems, Bhutan stands out as a pioneering example of how sustainable energy can drive crypto adoption [1].

References:
[1] https://finbold.com/bhutan-silently-mines-1-3-billion-in-bitcoin/
[2] https://cryptonewsland.com/indian-lawmaker-calls-for-bitcoin-reserve-pilot/