The Kingdom of Bhutan, located in the Himalayas, has entered the ranks of the world leaders in terms of government Bitcoin reserves. According to Arkham Intelligence, as of June 2025, the country has accumulated Bitcoin worth approximately $1.3 billion, which accounts for nearly 40% of its gross domestic product.
This is reported by Business • Media
How Bhutan Invested in Bitcoin and Developed Mining
Unlike many countries, Bhutan did not purchase cryptocurrency on the open market or confiscate it as part of criminal cases. As early as 2020, the state began secretly establishing its own mining facilities, utilizing excess hydroelectric power. The first mining farm was launched near the Dochula Pass during the pandemic when the country’s borders were closed. Due to restrictions, engineers set up imported equipment themselves – the first two machines even caused overheating in the office, creating a nighttime alarm for the staff. By 2022, the country was already operating four state-owned mining centers.
“For Bhutan, this was evident in many aspects. We view Bitcoin as a store of value, similar to gold,” explained Ujwal Deep Dahal, the CEO of the state investment fund Druk Holding and Investments, which implemented the project, in a comment to The Wall Street Journal.
A partnership with Singapore’s Bitdeer Technologies enabled the opening of two more mining farms. Bitdeer pays for electricity in U.S. dollars, which helps strengthen Bhutan’s foreign reserves. According to satellite data, there are currently at least six mining facilities operating in the country under the management of Green Digital.
The Impact of Bitcoin Reserves on the Economy and Life in the Country
The rise in Bitcoin’s price—from less than $10,000 in 2020 to over $100,000 in 2025—has allowed the government to fund important budgetary needs, including a significant increase in salaries for civil servants.
“This increase was fully funded by Bitcoin,” noted Prime Minister Tshering Tobgay.
However, the high level of secrecy surrounding cryptocurrency reserves has raised concerns among some officials and citizens. Many residents learned about the substantial Bitcoin reserves only after news of a 65% salary increase.
Despite its successes, the government does not plan to expand the number of mining farms, focusing instead on modernizing existing facilities. Meanwhile, Bhutan is actively integrating cryptocurrencies into everyday life: tourists can now pay for visas, airline tickets, and hotels in over 100 digital currencies. Additionally, a unique project is being launched in the special region of the City of Mindfulness in Gelephu, using cryptocurrencies as part of the urban economy.
Bhutan demonstrates one of the most unconventional yet effective state cryptocurrency strategies, combining Web3 innovations with traditional economic management.