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Bhutan is an Asian country with various unique facts. It is starting to become a country without traffic lights, minimal crime, happy residents, and Bitcoin worth $780 million. With ownership of one-third of its total G.D.P., Bhutan has directly become one of the countries in the world with the fourth largest Bitcoin reserves, surpassing El Salvador, which was reported yesterday to be continuously accumulating Bitcoin.
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Bhutan’s Strategic Bitcoin Ownership
This country has fewer than 900,000 inhabitants, so like other countries with small populations, the happiness of its citizens is a top priority for this nation located in the Himalayas.
However, this country has only recently been found to have secretly accumulated Bitcoin, in this case, as part of the state-owned fund, Druk Holdings. Druk Holding is a company that has invested millions of U.S. dollars into cryptocurrency by mining Bitcoin since the price of Bitcoin was at $5,000.
Based on data from Arkham Intelligence, the Bitcoin address associated with Druk Holding has accumulated 13,019 BTC, amounting to approximately USD 758 million. Furthermore, Druk Holding’s portfolio has diversified into altcoins, holding 656 ETH, valued at around USD 1.5 million, as well as a small amount of BNB. and Polygon (MATIC).
Collaboration with Singaporean Companies
In collaboration with one of the largest mining companies in Asia, Bitdeer, utilizing the abundant water resources in the mountainous region of Bhutan. In 2023, the Singapore-based mining company revealed to investors in a stock market update that Bitdeer was in talks to secure access to 100 megawatts (MW) of power for a Bitcoin mining data center in Bhutan, and this was completed at the beginning of the last Q2.
Despite being a small country, Bhutan has an electricity capacity rivaling that of the United States. Bitdeer will continue to expand by building the country’s mining capacity to reach 600 MW by 2025. This shows the global crypto industry players how serious Bhutan is about becoming a crypto-adopting country.
Bhutan Vs El Salvador Bitcoin Strategic Accumulation
Bhutan’s Bitcoin strategy contrasts with El Salvador, the first nation to make Bitcoin legal tender. El Salvador started buying Bitcoin in September 2021, priced at approximately $51,700.
Currently, El Salvador holds 5,875 BTC, valued at roughly $331 million, notably less than Bhutan’s Bitcoin reserves. Moreover, El Salvador’s average purchase price per Bitcoin was higher at $43,900. In contrast, Bhutan began mining Bitcoin in 2019 at around $5,000.
Both nations utilize renewable energy for their mining activities—El Salvador taps into geothermal energy from its volcanoes, while Bhutan leverages hydropower.
Bhutan’s strategy, focused on state-run Bitcoin mining instead of direct purchases, has enabled the country to accumulate an enormous BTC reserve with a more diversified investment approach.