This Small Country Mined 13,000 Bitcoin—Now the 4th Largest Holder

Introduction

When you think of massive Bitcoin holders, the usual suspects come to mind: the U.S., China, maybe even El Salvador. But here's a curveball for you—Bhutan, a small Himalayan kingdom known more for its breathtaking monasteries than its tech prowess, has quietly surged to become the fourth-largest government Bitcoin holder in the world. How did this happen? Well, this is where Beluga’s editorial team steps in to break it down for you!

From Serenity to Servers: Bhutan’s Mining Leap

Bhutan’s foray into Bitcoin began with a unique advantage: the country's abundant hydroelectric energy. Powered by rivers cascading through the Himalayas, hydropower accounts for nearly all of Bhutan’s electricity. This renewable energy not only powers homes and industries but also fuels a growing network of Bitcoin mining facilities.

Since 2021, Bhutan has been mining Bitcoin under the radar. Using infrastructure managed by its state-owned investment arm, Druk Holding & Investments, the nation strategically turned idle land—including an abandoned Education City project—into high-tech Bitcoin mining farms. These efforts were largely invisible until 2024, when analysts at Arkham Intelligence revealed Bhutan’s wallets, showing holdings of 13,011 BTC, valued at around $780 million!

Mining Done Right: A Green Vision

What makes Bhutan’s Bitcoin endeavour stand out is its eco-friendly approach. Unlike other nations reliant on fossil fuels for mining, Bhutan’s reliance on hydropower has made its operations both cost-effective and sustainable. Collaborations with companies like Bitdeer Technologies have further scaled Bhutan’s efforts. For instance, a recent partnership aims to increase mining capacity from 100 to 500 megawatts by 2025, making the country a global leader in sustainable mining​.

Satellite view of the massive Bitcoin mining site in Bhutan, Source: Planet Labs PBC

A Billion-Dollar Milestone and Counting

While Bhutan officially holds 13,011 BTC, rising Bitcoin prices pushed the value of its reserves past $1 billion in late 2024. This leap has placed Bhutan just behind the United States, China, and the UK in government-held Bitcoin rankings. In comparison, El Salvador—a Bitcoin trailblazer—holds just 5,748 BTC, worth significantly less​.

Interestingly, Bhutan’s accumulation method is starkly different from the U.S. and China, which acquired much of their Bitcoin through legal seizures. Bhutan, instead, built its stash directly through mining, showcasing its proactive and strategic approach.

Why This Matters for Bhutan and Beyond

Bhutan’s move into Bitcoin is more than just a national reserve strategy—it reflects a global shift. Smaller nations, often sidelined in financial innovation, are now carving significant niches in the digital asset economy. Bhutan’s hydropower-driven mining model could serve as a template for other energy-rich but resource-constrained countries.

Moreover, this quiet but massive accumulation could reshape Bhutan’s economy. With Bitcoin contributing a sizable chunk to its GDP, the kingdom is positioning itself as a key player in the future of finance.

What’s Next?

As Bhutan scales its mining operations, its holdings will likely grow, further cementing its position among Bitcoin’s elite. This unique blend of sustainability, strategy and cutting-edge technology could make the Himalayan nation a Bitcoin powerhouse for years to come.

In a world where small players often get drowned out by giants, Bhutan’s Bitcoin story is a powerful reminder that size doesn’t always matter—strategy does.

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