Bhutan began mining in 2020 using hydropower and now ranks third among government Bitcoin holders.
On June 27, Dennis Porter, the CEO of SatoshiActFund, tweeted about a Wall Street Journal article. That revealed Bhutan’s Bitcoin holdings now amount to $1.3 billion, nearly 40% of the country’s GDP. The Himalayan kingdom, known more for its Gross National Happiness index than tech innovation, began quietly mining Bitcoin in 2020. Five years later, it holds the third-largest Bitcoin reserve among governments. “For Bhutan, it was quite obvious in a lot of ways,” said Ujjwal Deep Dahal, head of Druk Holding and Investments. Porter called the development a “crypto milestone,” highlighting Bhutan’s hydropower-based mining strategy and its long-term vision for digital assets.
The idea for Bitcoin mining came from Bhutan’s king, Jigme Khesar Namgyel Wangchuck. He asked his team for ideas to use technology to boost the struggling economy. That sparked an unusual but bold decision to make a Bitcoin reserve. “For Bhutan, it was quite obvious in a lot of ways,” said Dahal, who led the project. Bhutan already had cheap electricity from its rivers. That made it an ideal spot for crypto mining, which needs huge amounts of power. Mining began during the pandemic, when Bhutan was closed to outsiders. Dahal and four others slept at the first mine site near Dochula Pass to get it running.
Their journey started with just two computers, which once overheated their office and set off a security alert. Despite these humble beginnings, they learned quickly. By 2022, Bhutan had opened four state-owned mines. Their timing couldn’t have been better. Bitcoin’s price soared from under $10,000 in 2020 to around $100,000 today. The Bhutan Bitcoin Reserve grew in value, helping offset a drop in hydropower exports. “That increase has been financed totally with bitcoins,” said current Prime Minister Tshering Tobgay, referring to pay hikes for civil servants.
Bhutan’s mining project has remained largely secret. Even many citizens didn’t know about it until recently. The government has never fully disclosed the number of mines it operates. Officials say this secrecy is intentional. “You don’t want to waste a day of mining, once you have the machines,” Dahal explained. They chose cool mountain areas near power lines to set up the mines. The government created a company called Green Digital to run the operation. International experts helped over the phone during the setup. Bhutan also partnered with Bitdeer Technologies, a Singapore-based mining company.
Bitdeer built two additional mines and pays Bhutan for electricity in U.S. dollars. This has helped the country increase its foreign-currency reserves. At least six mines are now operational, according to satellite images. Dahal insists the project follows all regulations. Still, some government officials have expressed concern over its lack of transparency. But for many Bhutanese, the benefits are clear. “I wasn’t aware of bitcoin reserve at all, but it is a diversification of our economy,” said Chencho Tshering, a 25-year-old government analyst.
Bhutan is now planning to hold on to its Bitcoin reserve for the long term. The government doesn’t plan to build new mines but aims to upgrade the existing ones. More importantly, it has started exploring ways to use crypto in everyday life. In May, Bhutan launched a payment system for tourists, allowing them to pay for flights, hotels, and visas using over 100 cryptocurrencies. Crypto is also shaping Bhutan’s future cities. In Gelephu Mindfulness City, a new special region, crypto will become part of daily life. “It’s basically the salt in your curry,” said Dr. Lotay Tshering, former prime minister and now head of the zone. “It will touch every element in the curry.”
Dennis Porter said, “This small country now has the third largest BTC reserve in the world.” While risks remain, Bhutan has made a bold bet. Unlike larger nations, it quietly mined its way into the global top three. The Bhutan Bitcoin Reserve now stands as a symbol of how a small, determined nation can lead in the digital age with power, patience, and purpose.
