Bhutan Emerges as an Unexpected Hub in the World of Cryptocurrencies

According to a report by Álvaro Sánchez for El País, Arkham Intelligence has revealed Bhutan’s state-owned conglomerate, Druk Holdings, owns a staggering 13,011 bitcoins.

Nestled in the Himalayas and bordered by China and India, Bhutan has quietly become a major player in the world of cryptocurrencies, thanks to its state-owned conglomerate Druk Holdings, which owns a substantial amount of bitcoin, according to a report by El País.

citing data from Arkham Intelligence, Bhutan owns 13,011 bitcoins, which is more than double the amount held by El Salvador’s president, Nayib Bukele. With Bhutan's population being around 820,000, this stash equates to roughly $1,000 in bitcoins per citizen.

Druk Holdings operates bitcoin mining facilities that run 24/7, utilizing the country’s abundant hydroelectric power resources. Satellite images analyzed by Arkham Intelligence have confirmed the existence of these facilities, including a large-scale operation on the grounds of the failed Education City project, according to El País.

Unlike many governments that have acquired bitcoins through asset seizures, Bhutan's holdings are the result of large-scale mining operations, which began ramping up in early 2023, El País reported. These operations have placed Bhutan fourth globally in terms of bitcoin holdings, behind only the U.S., China, and the U.K.

In addition to bitcoin, Bhutan also holds $35 million in Ethereum, $3 million in Binance’s BNB token, and $20,000 in the Polygon blockchain, according to El País.

Bhutan's involvement in cryptocurrency mining was initially kept under wraps, but it came to light when Forbes used satellite imagery to locate the mining facilities. The country's connections to bankrupt crypto lenders BlockFi and Celsius were also revealed, as the authorities had deposited some funds with these companies.

In May 2023, Singapore-based Bitdeer Technologies announced a $500 million partnership with Druk Holdings to develop green cryptocurrency mining in Bhutan, according to El País. The country’s abundant hydroelectric power gives it a unique advantage in the sector, allowing it to mine bitcoin in a cost-effective and environmentally friendly way.

Bhutan's competitive edge in the crypto industry is largely due to its clean and cheap energy resources, which have attracted crypto miners to the country, according to El País.

Despite the rise in cryptocurrency activities, Bhutan remains focused on broader state investment strategies, including infrastructure, energy, drones, and physical mining of materials like magnesium, El País reported.