A small Asian country nestled in the Himalayas is now among the world’s largest holders of Bitcoin.
Bhutan may occupy a small land area, but it has achieved great progress in its cryptocurrency investments $1 billion in Bitcoin.
Strategic move
The landlocked Himalayan nation is increasing its presence in the cryptocurrency space by building up its Bitcoin reserves. This step, which analysts consider a strategic investment approach, has now achieved positive results.
This was reported by Arkham Intelligence Bhutan It has become a major player in the cryptocurrency industry, owning $1 billion worth of Bitcoin, a remarkable achievement for such a small country.
The Royal Government of Bhutan now owns $1 billion in Bitcoin. pic.twitter.com/y8MQdCqMDy
– Arkham (@ArkhamIntel) November 11, 2024
Analysts said this major milestone highlighted the calculated steps taken by the Bhutan government to diversify its economy to mitigate the impact of the Covid pandemic on the tourism sector.
According to Arkham Intelligence, Druk Holdings, the company that manages BTC investments in Bhutan, owns 12,568 bitcoins, firmly placing the Himalayan nation as one of the world’s leading BTC investors.
Exploiting hydroelectric resources to obtain Bitcoin
Bhutan is using its abundant hydroelectric power to fund its Bitcoin investments as the country now ranks fourth among countries with cryptocurrency holdings, joining countries like El Salvador, a South American country that has declared Bitcoin its national currency.
BTCUSD trading at $91,005 on the daily chart: TradingView.com
Analysts said the Royal Government of Bhutan has taken advantage of its natural resources to steadily increase its cryptocurrency reserves, allowing it to reach this milestone. They said the country has implemented a consistent Bitcoin mining strategy by leveraging its rich natural resources to keep operating costs low.
Its rich hydropower resources help the Himalayan nation sustain cryptocurrency mining which is a major contributor to the country’s economy.
A scenic view of Bhutan. Image: Responsible Adventures
According to data, more than 25% of the country’s GDP comes from mining Bitcoin. It shows that the Bhutan government is committed to turning cryptocurrency into an economic asset.
The country has already mined 13,011 Bitcoins, making it the government with the largest Bitcoin holding.
Global trend
Analysts said Bhutan’s achievement shows a global trend of many countries seeing the value of cryptocurrencies as an asset. Bhutan and El Salvador are among the countries adopting cryptocurrencies as a financial instrument.
The first cryptocurrency is gaining traction as more countries begin to explore the potential of BTC as part of their national reserves. One country, El Salvador, announced in 2021 that it would adopt Bitcoin as legal tender.
Bhutan is another excellent example of cryptocurrency adoption, but analysts said other countries could learn from Bhutan’s alternative model of hydroelectric mining strategy.
Featured image from OneSafe, chart from TradingView