The Royal Government of Bhutan’s Bitcoin holdings have crossed $1 billion in value, bolstered by a recent price surge and a sustainable mining strategy leveraging hydropower.
The Royal Government of Bhutan’s Bitcoin holdings have reached a valuation of over $1 billion following a series of recent Bitcoin price surges. Bhutan’s government, which engages in both Bitcoin mining and long-term holding, has strategically accumulated a substantial amount of Bitcoin over recent years. With Bitcoin’s price currently above $84,000, Bhutan’s assets have seen a significant increase in value, positioning the small Himalayan nation as one of the largest government holders of Bitcoin.
Bhutan now owns over $1 billion in #Bitcoin. pic.twitter.com/0T4C4bMnPU
— TFTC (@TFTC21) November 11, 2024
The government’s holdings, totaling approximately 12,568 BTC, place Bhutan fourth globally in terms of Bitcoin reserves, following major holders like the United Kingdom. Bhutan’s Bitcoin holdings are primarily managed through Druk Holding & Investments, a state-owned investment firm. The country leverages its local hydropower resources to power mining operations, allowing for more sustainable Bitcoin production. Bhutan’s approach contrasts with some other countries, as both Bhutan and El Salvador rely on mined Bitcoin rather than assets seized through legal channels.
The Royal Government of Bhutan reportedly mines around five BTC daily through partnerships with major mining pools AntPool and FoundryUSA. This setup has allowed Bhutan to steadily increase its reserves, keeping a large portion of its mined coins in reserve rather than selling them on the market. While most of these assets are held in four primary wallets, the government has periodically liquidated portions of its holdings. For instance, Bhutan recently transferred 929 BTC to Binance, likely for sale.
Bhutan’s Bitcoin reserves are part of the government’s broader investment strategy. Alongside traditional assets, Bhutan’s holdings represent a move toward establishing a national wealth fund. The use of Bitcoin as part of a national reserve has sparked discussions globally about the role of Bitcoin in government finance. The U.S. government, for example, has accumulated Bitcoin holdings from seizures but has yet to formally integrate them into its reserves. Norway’s sovereign wealth fund, based on oil, is valued at $1.74 trillion, highlighting the comparatively small scale of Bitcoin in the context of national reserves.
