- Bhutan has mined over 12,000 BTC since 2020, now worth approximately $1.3 billion.
- Its Bitcoin holdings account for nearly 40% of the country’s total GDP.
- The government quietly scaled mining operations using hydropower and now ranks as the world’s third-largest state Bitcoin holder.
The small Himalayan kingdom of Bhutan has mined around 12,000 Bitcoin worth about $1.3 billion since 2020. The country has used its abundant hydropower to power high performance computer rigs.
$1.3 billion is equal to nearly 40% of Bhutan’s GDP, putting the country just behind the United States and China in terms of sovereign Bitcoin holdings.
This secretive mining operation began with a vision from King Jigme Khesar Namgyel Wangchuck, who was heavily focused on pushing the country beyond tourism and into technology-led growth.
In May 2025, Bhutan announced its first fully digital bank, which allows tourists to make crypto payments throughout their travel experience in the country.
The Bitcoin mining idea was spearheaded by the head of Druk Holding & Investments (DHI) Ujjwal Deep Dahal who proposed using Bhutan’s surplus clean energy to mine Bitcoin.
The project reportedly started on a lowkey note with just two imported mining rigs placed in a government office in the capital, Thimphu. With travel halted during the COVID-19 pandemic, Dahal and a small team taught themselves how to run the machines, often calling experts overseas for help.
By late 2020, a full mining site was up and running near Dochula Pass, where cool mountain air helped keep the machines from overheating. By 2022, the government had set up four mining sites and satellite images now suggest there are at least six active locations.
Bhutan’s edge is its clean electricity, generated from glacier-fed rivers. While miners in other countries struggle with high fossil fuel costs, Bhutan turns summer monsoon water into digital power. Dahal calls Bitcoin “a battery,” storing value from excess electricity that would otherwise go unused.
The Bitcoin profits came at a crucial time. During the pandemic, tourism stopped and hydropower exports dropped. In 2023, the government sold about $100 million in Bitcoin to fund a large pay raise for civil servants, with some workers seeing their salaries rise by two-thirds. This helped prevent a feared brain drain.
However, not everyone in Bhutan is supportive of the project. Some officials are concerned about secrecy and the long-term impact on electricity exports. Economists warn that sharp swings in Bitcoin prices could affect the country’s finances.
Bhutan maintains that its Bitcoin stash is a strategic reserve rather than a spending fund.
For now, the country won’t build new mines but will focus on upgrading existing ones ahead of the next Bitcoin halving in 2028.
