Nestled in the Himalayas, Bhutan, a country with fewer than 1 million people and a GDP of just $3 billion, has made headlines with its surprising investment strategy. The tiny nation has amassed over $780 million in Bitcoin (BTC-USD), making it one of the largest state-owned holders of the digital currency in the world. This substantial stash represents nearly one-third of Bhutan’s GDP, according to Arkham.
Druk Holdings Drives Bitcoin Expansion
Bhutan’s Bitcoin haul comes courtesy of Druk Holdings, the state-owned entity that has been aggressively expanding its mining operations. Through its partnership with mining giant Bitdeer, Druk Holdings has significantly increased its Bitcoin mining capacity. Arkham reports that Bhutan’s mining facilities are set to expand to 600 megawatts by 2025, up from the current 100 megawatts. This expansion is part of a broader strategy to diversify revenue streams beyond the country’s traditional reliance on hydropower, tourism, and agriculture.
Druk Holdings Executes Major Bitcoin Transactions
Recent activity from Druk Holdings’ Bitcoin wallets reveals a flurry of transactions. According to Arkham, the state-owned entity has been both depositing and withdrawing significant amounts of Bitcoin, including transfers to major exchanges like Kraken. Notably, a transaction in early July involved sending over $25 million worth of Bitcoin to Kraken, where it was likely sold.
Aiming for More than Just Profits
Despite its substantial Bitcoin holdings, Bhutan values the happiness of its citizens more than economic metrics. The country’s focus on digital assets, including Bitcoin mining, is a strategic move by Druk Holdings to boost its financial reserves and explore new revenue avenues, blending traditional values with modern financial strategies.
At the time of writing, Bitcoin is sitting at $59,209.77.
