Bhutan’s Bitcoin Reserves Now Equal 40% of Its GDP
The Himalayan kingdom of Bhutan now holds Bitcoin reserves valued at nearly 40% of its GDP, a result of strategic mining during the pandemic.
Bhutan began accumulating Bitcoin reserves through state-run hydropower mining operations in 2019, shortly before the COVID-19 pandemic. Over the past five years, the Himalayan nation has built up digital assets now valued at around $1.3 billion, nearly 40% of the kingdom's gross domestic product. Dennis Porter, CEO of Satoshi Action Fund, highlighted these figures in the media.
Bhutan’s Strategic Use of Hydropower for Bitcoin Mining
Druk Holding and Investments Ltd., Bhutan’s sovereign wealth fund, initiated the Bitcoin mining project in 2019 to diversify revenue sources as traditional income declined. The initiative uses Bhutan's hydropower capacity to run high-performance computing equipment for Bitcoin mining.
The pilot phase involved a limited deployment of mining hardware. When tourism and hydropower export revenues dropped sharply during the pandemic, officials expanded mining operations to address budget shortfalls. As of mid-2025, Bhutan operates a 100 MW mining data center in Gedu, with a 500 MW facility under development in Jigmeling.
Bitcoin's price increase from under $10,000 per coin in 2020 to around $100,000 today multiplied the kingdom's returns and accelerated reserve growth.
Bhutan’s crypto-asset operations are overseen by Druk Holding and Investments Ltd. The mining sites are located in Gedu (Chukha District) and Jigmeling (Sarpang District), both adjacent to hydroelectric power plants.
Economic Impact and Long-Term Crypto Vision
Mining earnings helped offset declining hydropower exports to India and funded salary increases for civil servants. The government sold part of its digital holdings in 2023 to double monthly wages for government workers, which reduced staff resignations.
Authorities plan to keep the Bitcoin reserves indefinitely and focus on upgrading existing equipment rather than building new facilities. In May 2025, Bhutan launched a payment system that allows tourists to pay for flights, hotel stays, and visa fees using over 100 cryptocurrencies.
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