Bhutan Transfers $59 Million into Bitcoin Reserves
Bhutan, a small Himalayan kingdom, is making waves in the cryptocurrency world. The nation is unique for running both large-scale mining and direct consumer-level crypto adoption projects, marking a significant shift in its economy.
According to recent reports, Bhutan holds approximately 10,769 BTC, valued around $1.26 billion, representing about 30-40% of its GDP. This substantial Bitcoin reserve is managed strategically by Druk Holdings and Investments (DHI), the country’s state investment arm.
Active Portfolio Management
In July 2025, Bhutan made a significant move by transferring around 512.84 BTC (~$59 million) to Binance and another $60 million in Bitcoin to institutional custodial wallets. This suggests that Bhutan is not merely hoarding Bitcoin but strategically timing market sales to optimize returns.
Sustainable Bitcoin Mining
Bhutan's mining operations are powered by 100% renewable, low-cost hydroelectric power from surplus capacity. This approach minimises environmental impact and positions Bhutan as a global leader in green crypto mining since 2019. Over 13,000 BTC have been mined using this method, building up a sizable reserve without the environmental cost typical of crypto mining.
Economic Integration
Bhutan has integrated crypto into its economy by launching a nationwide crypto payment system linked to tourism payments. Partnering with Binance Pay and its state-owned DK Bank, Bhutan now allows visitors to pay for services in Bitcoin and stablecoins, attracting global tourists and investors interested in cryptocurrency.
Governance and Institutional Control
The central management of the crypto portfolio by DHI reflects careful, long-term fiscal planning and risk mitigation. The shift to a Cobo Hot Wallet indicates a step toward more sophisticated asset management.
This approach impacts Bhutan’s economy by:
- Transforming surplus renewable energy into valuable digital assets, increasing national wealth without the environmental cost typical of crypto mining.
- Diversifying government revenue sources through well-timed Bitcoin sales and crypto payments, potentially smoothing economic fluctuations in a small economy heavily reliant on hydropower and tourism.
- Boosting the tourism sector by enabling crypto payments, thus attracting global visitors and investors interested in cryptocurrency.
Overall, Bhutan’s evolving Bitcoin strategy represents a forward-looking, sustainable, and economically strategic model of state-backed cryptocurrency asset management, leveraging its natural resources and fostering innovation in public finance.
[1] Bhutan Launches National Crypto-Enabled Payment System for Tourism
[2] Bhutan's Bitcoin Mining Strategy: Carbon-Free and Powered by Hydroelectric Plants
[3] Bhutan's Bitcoin Reserve: A Significant Economic Asset
[4] Bhutan's Bitcoin Sales Signal Strategic Profit-Taking at Peak Prices
[5] Bhutan's Shift to Institutional-Grade Custodial Wallets
- Bhutan's cryptocurrency strategy involves leveraging its renewable energy sources to mine Bitcoin, showcasing a carbon-free approach to cryptocurrency mining since 2019.
- Bhutan's move to Binance and institutional custodial wallets indicates a strategic approach to Bitcoin trading, suggesting they are optimizing returns by timing market sales.
- Bhutan's direct consumer-level crypto adoption projects, coupled with a nationwide crypto payment system linked to tourism, is a significant step towards boosting economic integration and attracting global investors.
- Druk Holdings and Investments (DHI) manage Bhutan's extensive Bitcoin reserve, signifying a forward-thinking and economically strategic model of state-backed cryptocurrency asset management.
- The shift to a Cobo Hot Wallet by Bhutan signals a step towards more sophisticated asset management in the cryptocurrency arena, demonstrating a focus on technological advancement in financial investments.
