Bhutan's Bitcoin Reserve Surges 900% to $1.3 Billion

[Sticky Bomb]

On June 27, the CEO of SatoshiActFund, Dennis Porter, highlighted a significant development in Bhutan's financial strategy. The Himalayan kingdom, renowned for its Gross National Happiness index, has amassed a Bitcoin reserve valued at $1.3 billion, constituting nearly 40% of its GDP. This revelation underscores Bhutan's strategic move into the digital asset realm, positioning it as a leader in crypto innovation among governments.

The initiative to mine Bitcoin originated from Bhutan's king, Jigme Khesar Namgyel Wangchuck, who sought technological solutions to bolster the economy. The country's abundant hydropower resources made it an ideal location for crypto mining, which demands substantial energy. Mining operations commenced during the pandemic, when Bhutan was isolated from the outside world. The project began with just two computers and has since expanded to four state-owned mines, capitalizing on the surge in Bitcoin's price from under $10,000 in 2020 to around $100,000 today. This growth has helped offset declines in hydropower exports and financed pay hikes for civil servants.

Looking ahead, Bhutan plans to retain its Bitcoin reserve for the long term and upgrade existing mines rather than build new ones.

Source


Another day to remind all of us that long-term investment into bitcoin can never go short of being very profitable. As we can see from above their mining activities which started from during the pandemic has helped them fix their economy to a very large extent. What impresses me most is that they started off with two computers or so and have now upgraded to four state-owned mines reiterating the ability to start small in your investment into bitcoin and increase overtime for more profitability.

[Japinat]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine. And while they’re still holding most of their earnings for the long term, they’ve already sold a portion to fund the development of their country.

Just recently this year, here’s what they’ve sold so far:

Royal Bitcoin Drain: Bhutan Quietly Dumps 2,584 BTC in 40 Days

Roughly 40 days ago, Bitcoin.com News disclosed that the Royal Government of Bhutan, via Druk Holding and Investments (DHI), had moved 600 BTC, and at the time, held a balance of 10,070 BTC. Since that report, Bhutanese officials have evidently parted ways with 2,584 BTC—shedding approximately $248 million in digital assets.

[john_egbert]

Good for them.

Small countries and bigger too find more and more ways how to make it big and better with BTC, and that's truly great.

[Sticky Bomb]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine.

Cost of equipment is not to be described as no cost, so they spent money, although very little. Where it becomes economical is that most of the money they spent in acquiring advanced equipment was still dividends from their mining activities reinvested into upgrading the mining equipment, so their profitability in notable. Although they didn't directly buy bitcoin, but an investment into the security of bitcoin network is still very important and profitable too.

[melinoe]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine.

Cost of equipment is not to be described as no cost, so they spent money, although very little. Where it becomes economical is that most of the money they spent in acquiring advanced equipment was still dividends from their mining activities reinvested into upgrading the mining equipment, so their profitability in notable. Although they didn't directly buy bitcoin, but an investment into the security of bitcoin network is still very important and profitable too.

I would even say that it's better for BTC than just buying it - they truly making good work up here

[Japinat]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine.

Cost of equipment is not to be described as no cost, so they spent money, although very little. Where it becomes economical is that most of the money they spent in acquiring advanced equipment was still dividends from their mining activities reinvested into upgrading the mining equipment, so their profitability in notable. Although they didn't directly buy bitcoin, but an investment into the security of bitcoin network is still very important and profitable too.

I didn’t say the equipment came at no cost ...of course it does. What I meant is that they didn’t risk money the same way others do by directly investing in Bitcoin.

And let’s be real, not everyone can be profitable in mining. They’re one of the rare cases because of their access to natural resources, specifically hydropower, which gives them a steady and cheap energy supply. That’s what makes their operation consistently profitable.

They actually started small and scaled over time. Now they’re mining around 3 to 5 BTC per day, which is pretty solid.

[Ziskinberg]

They actually started small and scaled over time. Now they’re mining around 3 to 5 BTC per day, which is pretty solid.

That’s a big amount of money .. at current prices, they’re making around $535,000 at most. That’s probably close to some of their other main sources of income, so it makes sense why they’re focused on Bitcoin mining.

What’s even better is that they’ve held most of what they’ve mined, which could pay off big once the price climbs higher in the future.
Honestly, I think the country should consider making Bitcoin legal tender. It’s a small nation with likely minimal external debt, and the IMF probably won’t keep a close eye on them like they did with El Salvador.

[CryptoYar]

Bhutan story is truly inspiring showing long term Bitcoin investment can really pay off. Their king decision to use Bhutan plentiful hydropower for Bitcoin mining during pandemic was very clever proving they are open to new tech for economic gain.

They started with two computers and now four state owned mines their Bitcoin holdings grown to almost $1.3 billion almost 40% of their GDP.

Everyone noted Bhutan journey from small start to major Bitcoin holder showing that small initial investments with long term view and effort can give big profits in crypto.

[peter0425]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine. And while they’re still holding most of their earnings for the long term, they’ve already sold a portion to fund the development of their country.

That is really interesting considering how most countries got their bitcoins from acquiring them or confiscating from illegal cases they have busted. Not really buying bitcoins. It is just the circumstances have allowed them to be able to hold bitcoin. But mining bitcoin puts them in an advantageous situation compared to countries who only got their bitcoins from confiscation.

[Danica22]

What’s even better is that they’ve held most of what they’ve mined, which could pay off big once the price climbs higher in the future.

No, they have been mining bitcoin since 2019 till now and during that time they have sold a lot of bitcoin to the market, they do not hold all of it.
According to some reports, they have sold a total of over 16kBTC over the years and they currently hold 12kBTC. That means they have mined nearly 30kBTC in the past 6 years and sold more than half of those bitcoins to pay for the country as well as to maintain the mining.

Honestly, I think the country should consider making Bitcoin legal tender. It’s a small nation with likely minimal external debt, and the IMF probably won’t keep a close eye on them like they did with El Salvador.

They could make bitcoin a legal tender but I wonder, what is the benefit and what is the positive impact on their economy when bitcoin is used as a currency in their country?


https://blockworks.co/news/bhutan-btc-mining-operations

[hero_the_bossman]

Bhutan story is truly inspiring showing long term Bitcoin investment can really pay off. Their king decision to use Bhutan plentiful hydropower for Bitcoin mining during pandemic was very clever proving they are open to new tech for economic gain.

They started with two computers and now four state owned mines their Bitcoin holdings grown to almost $1.3 billion almost 40% of their GDP.

Everyone noted Bhutan journey from small start to major Bitcoin holder showing that small initial investments with long term view and effort can give big profits in crypto.

Water cuts even stone eventually, and that's the case there too: if you are determined enough, you can move mountains on your back no matter the size 

[SilverCryptoBullet]

I am unsure what is new and interesting in this news, could you tell me about it please?

Royal Government of Bhutan (Druk Holdings).
They are a national Bitcoin miners and with their energy from hydro power, they can use it for Bitcoin mining operations very easily. They know that mining Bitcoin will help them gaining more profit than selling abundant power to neighbor countries.

The chart shows both increasing portfolio value of Bhutan, while it also shows that they are almost consistently in Bitcoin accumulation. In addition, it shows that Bhutan strategy works recent years as well as latest months in this market cycle.

[hyudien]

One of the small countries that amazes me because their government utilizes their natural resources for bitcoin mining and they even do mining in an environmentally friendly way, they started it in 2019 until now and they have managed to record themselves as the country with the 6th largest bitcoin ownership. Bhutan should be an example for other countries that currently still have a negative view of bitcoin.

[freedomgo]

They could make bitcoin a legal tender but I wonder, what is the benefit and what is the positive impact on their economy when bitcoin is used as a currency in their country?

If not for their country, then at least for Bitcoin ...
This is great publicity for any nation that has declared it as legal tender,, and it also helps boost tourism, which, based on the data, is already growing.

with Bitcoin being accepted, it becomes easier for tourists to spend money without worrying about currency exchange. That kind of convenience can really help drive more visitors and support the local economy.

https://thebhutanese.bt/bhutan-gets-145065-tourists-in-2024/

Bhutan recorded a total of 145,065 tourist arrivals in 2024, marking a 40.7% increase compared to the 103,066 visitors in 2023 but still slightly short of the 150,000 tourists’ target.

[avikz]

I hope US suddenly doesn't found some oil reserves in Bhutan! Lol!

It's a great news for Bhutan. It is a very small country with peace loving people living their in harmony. I had a great fortune to visit their country long back when they had a King. Now they have moved to constitutional democracy.

I read some news that they are actively talking with some stakeholders to introduce card based bitcoin payment system in their country for the tourists. That's a real adoption.

[retreat]

Bhutan is a small country, with a relatively small population, meaning they need the right investment to grow their economy. And their decision to get involved in Bitcoin mining has paid off, with their Bitcoin reserves increasing significantly since they made the decision. It was a great decision for the Bhutanese government to make, and they will continue to grow their Bitcoin mining operations with plans to build mining facilities and increase mining efficiency. This is a big step for the Bhutanese government to take since they realized that they can’t rely on tourism all the time, and Bitcoin mining will hopefully provide additional revenue to grow their economy.

Bhutan is a great example (other than El Salvador) of how a small country can turn things around for the better by investing their resources in Bitcoin. Hopefully, Bhutan will not only see Bitcoin as an investment, but also as legal tender.

[fuguebtc]

Bhutan is a great example (other than El Salvador) of how a small country can turn things around for the better by investing their resources in Bitcoin. Hopefully, Bhutan will not only see Bitcoin as an investment, but also as legal tender.

While Bhutan has been quite successful in improving its economy with bitcoin, but they are not a perfect example of using bitcoin to improve the economy. Because not every country is lucky enough to have such abundant and cheap energy sources, while bitcoin mining is quite expensive, especially for energy-deficient countries like Pakistan.


Similar to El Salvador, they are also not a good example of bitcoin adoption as their economy is also drowning in debt and at risk of default.

Whether or not to invest in and adopt bitcoin will depend on the situation of each country, as each country has its own advantages and challenges. They need to base on the national situation to have appropriate plans to improve the economy, we should not imitate each other when we are not the same.

[Just Say]

What’s great about this is that they acquired everything through mining, no money was put at risk, just the cost of the equipment needed to mine. And while they’re still holding most of their earnings for the long term, they’ve already sold a portion to fund the development of their country.

Just recently this year, here’s what they’ve sold so far:

Royal Bitcoin Drain: Bhutan Quietly Dumps 2,584 BTC in 40 Days

Roughly 40 days ago, Bitcoin.com News disclosed that the Royal Government of Bhutan, via Druk Holding and Investments (DHI), had moved 600 BTC, and at the time, held a balance of 10,070 BTC. Since that report, Bhutanese officials have evidently parted ways with 2,584 BTC—shedding approximately $248 million in digital assets.

Perhaps it was their greatest advantage that they were able to acquire all of their bitcoins through mining. It is conceivable that Bitcoin will certainly be able to improve the struggling economic situation of this country so it goes without saying that they needed the right investment for their economic development but they may have already completed that by mining Bitcoin and adopting SBR.

Earlier we had significant news that this country had introduced a crypto payment system for tourists, which is still in effect. Moreover to my knowledge they have already quietly mined 12,000 Bitcoins since 2020 perhaps they will gradually continue to update their mining equipment and their Bitcoin mining methods will evolve into advanced ones.

[Findingnemo]

40% of their GDP? I don't think what is their backup plan when bitcoin enters into bearish and hit the rock bottom. It is good that bitcoin is considered as part of their reserves but it also has to be something stable in value in the event of uncertain scenarios and I don't think bitcoin has yet to reach that status of not being shattered when something goes wrong. The price fluctuates even if someone decides to start rumours and imagine a country losing 50% of its economy because of a rumour.

[MinoRaiola]

The people who take a risk and are smart should be rewarded. Buhan see the chance early and now they, or the country, can benefit from it. I read that last year they want to build a big city so that the young people dont flee to better countries. Unemployment is high and there are not many good jobs, so the country is in trouble. With this city that is 3x bigger than berlin and have a own airport. I can imagine that the profit from bitcoin is also a reason for this.

Gelephu Mindfulness City: You can find a few pictures on google, but so far these are just examples.