How Bhutan Became a Major Crypto Player, Surpassing El Salvador’s Bitcoin Stash: El País Report
2024-10-04

Bhutan, a small Himalayan kingdom nestled between China and India, has emerged as an unexpected hub in the world of cryptocurrencies.
According to a report by Álvaro Sánchez for El País, Arkham Intelligence has revealed Bhutan’s state-owned conglomerate, Druk Holdings, owns a staggering 13,011 bitcoins. This is more than double the amount held by El Salvador’s president, Nayib Bukele. The total value of this Bitcoin stash is around $780 million, which equates to roughly $1,000 in bitcoins per citizen of Bhutan, according to El País.
El País explained that the source of Bhutan’s substantial Bitcoin holdings comes from mining operations carried out by Druk Holdings. The conglomerate, whose name translates to “thunder dragon,” operates facilities that mine bitcoin 24/7, leveraging the country’s hydroelectric power resources. Arkham Intelligence have apparently confirmed this through satellite images of the mining infrastructure, including a major facility located on the grounds of the failed Education City project, El País stated.
The El El País article says that unlike many governments, Bhutan’s Bitcoin holdings are not the result of asset seizures but are earned through large-scale mining operations. Since early 2023, these operations have ramped up, putting Bhutan fourth globally in terms of Bitcoin holdings, behind only the U.S., China, and the U.K., according to El País. The country also holds additional digital assets, including $35 million in Ethereum, $3 million in Binance’s BNB token, and $20,000 in the Polygon blockchain.
El País also mentioned that Bhutan’s move into cryptocurrency mining was initially kept secret, but the country’s involvement came to light when Forbes revealed the locations of the mining facilities using satellite imagery. Bhutan’s connections to bankrupt crypto lenders BlockFi and Celsius were further exposed as the authorities had deposited some funds with these companies, El País added.
In May 2023, El País reported that Singapore-based Bitdeer Technologies announced a $500 million partnership with Druk Holdings to develop green cryptocurrency mining in Bhutan. The country’s abundant hydroelectric power has given it a unique advantage in the sector, allowing it to mine Bitcoin in a cost-effective and environmentally friendly way. El País attributed Bhutan’s competitive edge in the crypto industry to its clean and cheap energy resources.
Despite the rise in cryptocurrency activities, El País emphasized that Bhutan remains largely focused on broader state investment strategies, including infrastructure, energy, drones, and physical mining of materials like magnesium.
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