According to recent data from blockchain analysis firm Arkham Intelligence, the Royal Government of Bhutan now holds well over $1 billion in Bitcoin, taking advantage of Bitcoin’s soaring price and its mining operations.
Bhutan is known for its holdings of Bitcoin which is 12,568 BTC as another developing nation to turn towards crypto in an effort to drive economic growth. Managed through Druk Holdings, the government’s investment arm, this approach highlights the country’s need to tackle economic turmoil after COVID-19 hurt its tourism sector.
Bhutan’s Entry into the Bitcoin World
Bhutan’s entry into Bitcoin mining was partly driven by necessity. The country, heavily reliant on tourism, saw its economic landscape shift due to pandemic restrictions. In response, Bhutan tapped into its abundant energy resources, which were underutilized, to fuel Bitcoin mining.
This pivot has not only generated significant value but has also aligned with Bhutan’s goals of sustainable economic development. The recent bull run in Bitcoin prices, hitting record highs, has further boosted the value of these holdings, increasing Druk Holdings’ portfolio to over $1 billion.
Druk Holdings also oversees other crypto assets in addition to its Bitcoin. Bhutan holds 656 Ethereum tokens valued at over $2 million, along with more minor stakes in KIBSHI and BOBO tokens, according to Arkham Intelligence.
While Bhutan focused on Bitcoin through most of its crypto strategy, the Himalayan nation also is taking a multi-asset approach that fits with broader trends in government activity around digital assets.
Other Countries and their Bitcoin Holdings
The move follows the example of other developing nations like El Salvador, Kenya, or Paraguay signing off investments or mining crypto and reflects the general global trends. Among them, El Salvador has maintained a pretty strong stance that it intends to hold onto its Bitcoin reserves for the long haul.Â
While countries such as El Salvador and Bhutan are welcoming lossless assets, India, a neighbor of Bhutan, has been more careful, talking about penalties or heavy taxes for crypto trades. Such a divergence in strategies creates a stark belief difference, between Bhutan’s digital assets ambition and India’s conservatism.
At the same time, Donald Trump’s campaign in the U.S. has recently expressed interest in creating a national Bitcoin reserve for an economic vision of the United States. Aside from showcasing Bhutan’s clever adaptation of Bitcoin, it has pressured governments such as India to define better frameworks for cryptocurrency.
With Bitcoin gaining greater value and more countries looking to digital assets on their balance sheets, the Kingdom of Bhutan’s experience represents a strong case study for emerging economies overall as they look toward future digital currency adoption.