Hydropower-based crypto mining funds government expenses
~12,000 BTC accumulated since 2020 — ~40% of GDP
Green strategy positions Bhutan as third-largest sovereign BTC holder
Bhutan has quietly emerged as a major player in the world of Bitcoin. Since around 2020, the Himalayan kingdom has mined approximately 12,000 BTC, now worth over $1.3 billion. This holding makes up nearly 40% of Bhutan’s GDP, placing it as the third-largest state holder of Bitcoin, behind only the United States and El Salvador.
What sets Bhutan apart is how it mines Bitcoin. The country uses its vast hydropower resources to run its mining operations, making its Bitcoin production not only cost-effective but environmentally friendly. This green mining approach allows Bhutan to avoid the negative environmental impact that often accompanies crypto mining in other parts of the world.
Filling the Gap Left by Tourism
Tourism, once a key revenue source for Bhutan, has significantly declined since the COVID-19 pandemic. Visitor numbers have dropped, leading to a reduction in foreign income. To fill this financial gap, Bhutan turned to Bitcoin.
In 2023, the government sold around $100 million worth of Bitcoin. The proceeds were used to fund public services and double the salaries of civil servants, helping to reduce the number of professionals leaving the country. This move demonstrates how Bhutan is leveraging its Bitcoin stash to support its economy during tough times.
A Long-Term Digital Strategy
Bhutan’s approach to Bitcoin isn’t just a short-term fix. The government has signaled a strategic shift from selling Bitcoin to holding it as a long-term asset. This mirrors how countries hold gold reserves and positions Bitcoin as a store of national value.
Through Druk Holding & Investments (DHI), Bhutan is expanding its mining operations and partnering with international firms to scale up production. With plans to boost hydropower capacity from 3.5 GW to over 15 GW, Bhutan is laying the groundwork for even more robust crypto production in the future.
WATCH: Bhutan mines BTC to offset falling tourism revenue and fund government spending.
They now hold 12,000 BTC, 40% of their GDP and the 3rd-largest state stash. pic.twitter.com/I9M3TZlvFc
— Cointelegraph (@Cointelegraph) June 29, 2025
Why It Matters
Bhutan’s use of Bitcoin shows how small nations can harness digital assets for national development. Its model combines sustainability, economic resilience, and strategic foresight, offering a blueprint for other countries facing similar challenges.
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