Thomas Daniels
Bhutan, a Himalayan nation with a population of under one million, has emerged as the world’s fourth-largest sovereign holder of Bitcoin. According to blockchain analytics firm Arkham, the Kingdom of Bhutan holds over 13,000 Bitcoin (BTC), valued at more than $750 million as of September 16, 2023. This places Bhutan behind only the U.S., China, and the U.K. in sovereign Bitcoin reserves, surpassing El Salvador.
Unlike other nations that acquired Bitcoin through asset seizures or strategic purchases, Bhutan amassed its holdings through Bitcoin mining. Since early 2023, Bhutan, through its investment arm Druk Holdings, has significantly expanded its mining operations. Leveraging its mountainous terrain, the country has established multiple Bitcoin mining facilities. One notable project saw the repurposing of an abandoned Education City into a large-scale cryptocurrency mining center.
Despite its growing Bitcoin stash, Bhutan’s long-term strategy for its holdings remains largely undisclosed, with no indication of any intent to sell. As national governments worldwide begin accumulating digital assets, the intersection of Bitcoin and sovereign balance sheets is becoming more pronounced. Even central banks in countries like Norway and Switzerland have begun to gain exposure to the leading cryptocurrency.
While some view these developments as a positive signal for Bitcoin’s future, others question whether the increasing involvement of governments aligns with the decentralized vision of Bitcoin’s creator, Satoshi Nakamoto. As blockchain adoption continues to rise, the industry is left to wonder: which governments hold Bitcoin, and what are their future plans for it?
