2024-09-18
Bhutan has quietly amassed a significant Bitcoin reserve, surpassing El Salvador’s holdings. According to Arkham Intelligence, Bhutan’s investment arm, Druk Holdings, holds 13,036 BTC (approximately $789 million), which is more than double El Salvador’s 5,875 BTC.
Bhutan’s Bitcoin comes primarily from mining operations using
hydroelectric power, while El Salvador’s Bitcoin was purchased at a higher
average price.
Bhutan's acquisition of Bitcoin is an
interesting case, as the small Himalayan kingdom has quietly embraced
cryptocurrency despite its limited involvement in global financial markets.
Bhutan might have been started mining Bitcoin around
2019 or 2020. When the price Bitcoin was trading around $5,000 and $10,000.
Bhutan is believed to be involved in Bitcoin
mining due to its access to an abundance of low-cost, renewable energy from its
hydropower resources.
Hydropower provides a sustainable and
cost-efficient means for energy-intensive cryptocurrency mining operations,
which may serve as a means for Bhutan to accumulate Bitcoin.
Reports suggest that the country’s vast
hydropower capacity allows it to mine cryptocurrencies without relying on
external sources of energy, reducing the cost and carbon footprint associated
with mining.
This development highlights Bhutan’s
strategic approach to leveraging its natural resources for cryptocurrency
mining.
Bhutan's involvement in Bitcoin mining was discovered relatively recently around September 2024 and in a somewhat unexpected manner.
The revelation came to light through a series of reports and
leaks that connected the country's sovereign wealth fund, Druk Holding &
Investments (DHI), to both cryptocurrency holdings and mining activities.
The initial clue about Bhutan’s involvement in Bitcoin mining came when financial documents from crypto lenders such as BlockFi and Celsius were leaked.
These documents were made public
during their bankruptcy proceedings in 2022. The filings listed Druk Holding
& Investments (DHI) as a customer, indicating that Bhutan had significant
positions in Bitcoin and Ethereum. This was surprising to many, as Bhutan had
never publicly announced its involvement in cryptocurrency.
DHI’s ties to these platforms found
that the country had acquired these digital assets through mining operations and
possibly acquiring Bitcoin and other cryptocurrencies via centralized
exchanges.
Bhutan’s Bitcoin acquisition efforts
are mainly tied to Druk Holding & Investments (DHI), the country’s
sovereign wealth fund. DHI, which manages a diverse portfolio of investments
for the benefit of Bhutan, has been revealed to have holdings in
cryptocurrencies, including Bitcoin and Ethereum.
The fund has been actively engaged in
acquiring and managing digital assets since at least 2022, but much of this
activity remained undisclosed until recent reports surfaced.
platform.arkhamintelligence.com/explorer/entity/druk-holding-investments
On September 18, 2024, the Royal Government
of Bhutan through Druk Holdings holds 13,036 BTC worth $789.57 million.
The bitcoins come from Bitcoin mining and Bhutan’s Bitcoin holding manages by the
country sovereign wealth fund, Druk Holdings (DHI).
Bhutan’s GDP was $18 billion in 2023.
While, Bhutan's crypto portfolio worth $791 million.
