Bhutan Has Even More Bitcoin Than El Salvador Thanks to Its Mining Operation

The Kingdom of Bhutan now has the fourth-largest government holdings of Bitcoin, with a stash of over 13,000 BTC—valued at $750 million, says blockchain analytics firm Arkham Intelligence.

The Bitcoin stash, managed by the country’s state investment arm, Druk Holding & Investments (DHI), places the Himalayan kingdom ahead of even El Salvador, which holds 5,876 BTC worth $331 million, per Arkham.

While Bhutan’s involvement in cryptocurrency mining has been known for some time, new data from Arkham Intelligence sheds new light on the true scale of its operations.

Bhutan’s Bitcoin reserves are the result of mining efforts that began in 2019, with the country capitalizing on its plentiful hydroelectric power to sustain its mining operations.

Unlike other governments, which typically acquire Bitcoin through asset seizures, Bhutan’s crypto wealth stems directly from its green-powered mining farms, including one of its largest facilities built on the site of the former Education City project, according to Arkham.

In addition to Bitcoin, Arkham’s data revealed that DHI holds 656.013 ETH, along with smaller amounts of Binance Coin (BNB), Polygon (MATIC), Tether (USDT), and other cryptocurrencies.

This news comes on the heels of an earlier Forbes report in April 2023, which revealed that DHI had engaged in multi-million-dollar transactions with bankrupt crypto lenders BlockFi and Celsius.

The bankruptcy filings revealed DHI’s involvement with digital assets, raising questions about whether Bhutan had lost money through speculative trading.

DHI later clarified that no money was lost, and that its Bitcoin mining operations had been ongoing since April 2019, when Bitcoin was priced at around $5,000, per a local news report.

Decrypt has reached out to DHI for comment and will update this article should we receive a response.

Bhutan’s mining ambitions were then strengthened in 2023 by a strategic partnership with Bitdeer, a mining firm led by former Bitmain Technologies CEO Jihan Wu.

This Wall Street Firm Says Best Bitcoin Mining Stock Isn't a US Company

Among a slew of publicly traded Bitcoin mining companies, Cantor Fitzgerald says one firm in particular is being vastly undervalued by the market. In an equity research report last week, the veteran Wall Street investment bank said that the stock of Singapore-based Bitdeer (BTDR) currently has the “lowest implied value of any miner we cover” when comparing the firm’s present price to its expectations for hash rate growth. “We believe BTDR can more than 4x its hash rate capacity,” wrote Cantor. A...

The collaboration was expected to expand Bhutan’s mining capacity, with plans to raise $500 million through a closed-end fund.

In June 2024, veteran Wall Street investment bank Cantor Fitzgerald stated that Bitdeer is expected to become one of the largest publicly traded mining firms by year-end, despite being undervalued compared to other mining firms.