- The Kingdom of Bhutan now holds the fourth-largest government stash of Bitcoin, possessing over 13,000 BTC, valued at $750 million, according to Arkham Intelligence.
- Managed by Druk Holding & Investments (DHI), Bhutan’s Bitcoin holdings surpass those of El Salvador, which holds 5,876 BTC worth $331 million.
- Arkham’s data reveals that Bhutan’s Bitcoin reserves were primarily accumulated through hydroelectric-powered mining operations started in 2019.
Discover how Bhutan leveraged its hydroelectric resources to amass one of the largest government Bitcoin holdings, along with strategic insights into its cryptocurrency ventures.
Bhutan’s Strategic Bitcoin Accumulation
Bhutan’s journey into the world of cryptocurrency began in 2019, leveraging its abundant hydroelectric power to sustain extensive Bitcoin mining activities. Unlike other nations that acquire Bitcoin through asset seizures, Bhutan’s cryptocurrency holdings are a result of proactive mining efforts. Druk Holding & Investments (DHI), the state investment arm, has spearheaded these operations, positioning Bhutan significantly ahead in the crypto landscape.
DHI’s Diverse Cryptocurrency Portfolio
In addition to its substantial Bitcoin reserves, DHI also holds a diversified portfolio of other digital assets. This includes 656.013 ETH, and smaller quantities of Binance Coin (BNB), Polygon (MATIC), and Tether (USDT), among others. This diverse holding underscores Bhutan’s extensive engagement in the broader cryptocurrency market.
Financial Controversies and Clarifications
Earlier reports, notably from Forbes in April 2023, indicated that DHI had been involved in multi-million-dollar transactions with bankrupt crypto lenders BlockFi and Celsius. These revelations sparked concerns about potential financial losses due to speculative trading. However, DHI clarified that no funds were lost. Their Bitcoin mining activities, initiated in April 2019 when Bitcoin was approximately valued at $5,000, had consistently contributed to their digital asset reserves.
Partnership with Bitdeer and Future Ambitions
In 2023, DHI fortified its mining ambitions through a strategic partnership with Bitdeer, a renowned mining firm led by former Bitmain Technologies CEO Jihan Wu. This collaboration aimed to significantly enhance Bhutan’s mining capacity. The partnership included plans to raise $500 million via a closed-end fund, cementing Bhutan’s position in the global cryptocurrency mining industry.
Market Predictions and Valuation
In June 2024, Cantor Fitzgerald, a veteran Wall Street investment bank, projected that Bitdeer would emerge as one of the largest publicly traded mining companies by the end of the year. Despite this promising outlook, Bitdeer has been perceived as undervalued when compared to other mining firms, highlighting potential investment opportunities in the company.
Conclusion
Bhutan’s proactive involvement in the cryptocurrency realm through DHI exemplifies strategic use of natural resources for economic advancement. With significant Bitcoin holdings and a diversified digital asset portfolio, Bhutan stands as a key player in the global crypto mining sector. The partnership with Bitdeer and the bank projections on future valuations further underscore Bhutan’s robust position and forward-looking approach in the realm of digital assets.
