Bhutan has illustrated how Bitcoin and the mining process can bring forth tremendous revenue, with the country making $750M from mining Bitcoin. After being publicly condemned by governments worldwide, Bitcoin (BTC) emerged as a popular asset. Several developing nations have developed a new interest in cryptocurrency, with Bitcoin taking charge.
Despite its modest GDP of $3 billion, the East Himalayan Kingdom of Bhutan has shown developing nations how Bitcoin mining can improve economies. According to a recent report by Arkham Intelligence, Bhutan was seen holding a staggering 13,029 BTC. This is worth about $758 million. Less than 900,000 people live in the nation, however, Arkham claims it is currently home to the fourth-largest state-owned BTC.
Bhutan’s investment arm, Druk Holding and Investments holds 13,029 BTC, 656 Ether, and some BNB and Polygon. Currently, the total Bhutan crypto holdings amount to approximately $780 million in total crypto holdings.
How Did Bhutan Get Its Bitcoin?
Bhutan reportedly started mining BTC in April 2019. At that time, the leading cryptocurrency by market cap was trading at $5,000. This was done by employing hydroelectric power. Following this, in 2023, DHI and Bitdeer teamed up to roll out carbon-free mining activities in the country. Elaborating on that, Arkham stated,
“Bhutan has constructed Bitcoin mining facilities in multiple locations, with the largest being on the site of the now-defunct Education City project. Unlike most governments, Bhutan’s BTC does not come from law enforcement asset seizures, but from Bitcoin mining operations, which have ramped up dramatically since early 2023.”
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Furthermore, one of the top developing nations in South America for Bitcoin, El Salvador, has also been making noise for its inclination toward BTC. Despite its efforts to emerge as a Bitcoin-led country, El Salvador lags behind. Data from Nayib Bukele’s tracker website revealed that the nation holds about 45% of Bhutan’s current holdings. This amounts to about 5,875 BTC, worth $331 million. In addition, El Salvador bought Bitcoin when its price was higher than that of Bhutan.
El Salvador and Bhutan are setting a strong example for other developing nations worldwide of how powerful Bitcoin can be to help struggling economies. As the coin continues to rise in price, its use globally is correspondingly climbing. Some countries are even considering making BTC a reserve currency as a hedge to the US dollar, which has struggled in recent years.
