Bhutan’s Bitcoin Mining: $1.3 Billion Asset Accumulated

Bhutan, via Druk Holding and Investments, has mined 12,000 Bitcoin worth $1.3 billion since 2020, leveraging hydropower for mining.

The initiative highlights Bhutan’s pivot towards cryptocurrency to bolster national reserves and manage economic challenges.

Bhutan has quietly mined Bitcoin worth $1.3 billion, using its excess hydropower since 2020. The operation, managed by Druk Holding, marks a strategic shift, leveraging national resources for economic strength.

Under the leadership of Ujjwal Deep Dahal, Druk Holding has spearheaded the project. Their mining operations, initiated by King Jigme Wangchuck, aim to use Bhutan’s hydropower resources to strengthen the economy. Dahal was quoted saying, “You don’t want to waste a day of mining, once you have the machines.”

The Bitcoin mining venture significantly offsets declining hydropower revenues, ensuring financial stability. It underscores the strategic use of digital assets to bypass economic challenges, with public funds partly relying on BTC revenue.

The government’s activity impacts national reserves, with financial benefits evidenced by a $100 million sale funding civil sector pay hikes. The state’s actions reflect a calculated monetary policy shift towards cryptocurrency for fiscal management.

Potential impacts include further diversification in resource-backed cryptocurrencies, fueled by hydropower. Historical trends show a strategic advantage in mining over buying BTC, possibly leading to a model for other nations to follow.