Bhutan Surpasses El Salvador as a Major Bitcoin Holder in South Asia: Arkham

Bhutan has emerged as a major Bitcoin holder, surpassing El Salvador in terms of cryptocurrency holdings, according to data from Arkham Intelligence.

On September 16, the on-chain analytics platform revealed that Bhutan holds 13,029 Bitcoin, valued at approximately $758 million.

This makes Bhutan the largest Bitcoin holder in South Asia, surpassing El Salvador, which holds 5,875 BTC worth $331 million.

Bhutan Mines Bitcoin Using Hydroelectric Power

The Bitcoin holdings are reportedly linked to the Kingdom of Bhutan’s investment arm, Druk Holdings and Investments (DHI), which has been mining Bitcoin using the country’s abundant hydroelectric power.

Arkham Intelligence was able to confirm the activity through a combination of on-chain data and satellite imagery, pinpointing mining operations at the site of Bhutan’s former Education City project.

In addition to Bitcoin, Druk Holdings also holds 656 ETH, valued at around $1.5 million, along with smaller amounts of BNB and Polygon, further diversifying its crypto portfolio.

BREAKING: BHUTAN GOVERNMENT’S $750M BTC NOW ON ARKHAM

Bhutan’s Bitcoin holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by the Kingdom of Bhutan’s investment arm, Druk Holdings.

Arkham is the first to publicly identify these… pic.twitter.com/a8ScUNJJ9F

— Arkham (@ArkhamIntel) September 16, 2024

The scale of Bhutan’s Bitcoin holdings is significant when compared to the country’s economy.

Bhutan’s gross domestic product (GDP) is expected to reach $3 billion by the end of 2024, meaning the Bitcoin stash represents roughly a quarter of its GDP.

Bitcoin mining in Bhutan began in April 2019, when the cryptocurrency was priced at around $5,000.

More recently, in May 2023, DHI partnered with Bitdeer to expand its carbon-neutral mining operations, with plans to boost the country’s mining capacity to 600 megawatts by mid-2025.

In comparison, El Salvador began purchasing Bitcoin in September 2021 when prices were much higher, at around $51,700.

The Central American nation has since focused on mining Bitcoin using geothermal energy from volcanoes but trails Bhutan in overall holdings.

Failed Government Project Becomes Largest BTC Mining Facility

The largest and most significant mining facility in Bhutan is positioned on the site of a failed $1 billion government project called “Education City,” Forbes reported last year.

The project aimed to establish an international center for education and knowledge but was abandoned due to scandals and mismanagement.

The Bitcoin mine on this site is concealed behind mountainous terrain but is betrayed by transformers and power lines.

Historical satellite imagery reveals that its construction began in December 2021.

The country’s government, including the Ministry of Finance, has remained tight-lipped about its cryptocurrency activities.

DHI, which also oversees Bhutan’s flagship airline, hydroelectric power plants, and a cheese factory, has not provided detailed information on revenues or investment in bitcoin mining.

Bhutan’s interest in Bitcoin mining arose as a response to the economic challenges caused by the COVID-19 pandemic.

Bhutanese officials began engaging with bitcoin miners and suppliers in 2020.

The country experienced a significant surge in power usage by the industry in 2022, along with a substantial increase in imports of chips used for Bitcoin mining.

While the identified state-owned mines represent a significant development, they may not be Bhutan’s largest.

The country has also partnered with Singaporean Bitcoin mining giant Bitdeer for a 600 MW facility in the town of Gedu.