Bhutan Owns The Fourth-Largest Government Bitcoin Holdings Worth $750M

Recent findings by blockchain analytics firm Arkham Intelligence showed that the Kingdom of Bhutan ranks fourth globally in terms of government holdings of Bitcoin, with 13,000 BTC worth approximately $750 million.

The BTC remains in the custody of Bhutan’s state investment wing, Druk Holding & Investments, or DHI in short. The small kingdom thus jumps ahead of more publicized crypto-adopters like El Salvador, which holds 5,876 BTC worth $331 million.

Bhutan’s point of distinction is the source of its Bitcoin holdings—other governments usually seize the cryptocurrencies, whereas Bhutan’s stores are a product of mining itself.

The country’s dive into cryptocurrency mining began in 2019, using its rich hydroelectric power to fuel green mining operations. One of the most extensive facilities was built on the ruins of the former Education City project, a showcase of Bhutan’s commitment to this new digital frontier.

Data from Arkham further showed that DHI’s portfolio is not constrained to Bitcoin only but spills into Ethereum, BNB, Polygon, and Tether, among others. This diversified move hints at a full-fledged approach to cryptocurrency investment and mining.

The revelation of Bhutan’s significant crypto holdings-estimated to be in thousands of dollars just months after a Forbes report in April 2023 found that DHI was involved in multi-million-dollar deals with now-bankrupt crypto lenders BlockFi and Celsius, initially raising concerns of possible losses through speculative trading. DHI later clarified that no money had been lost and that Bitcoin mining had been ongoing since Bitcoin was priced around $5,000.