Bhutan uses Bitcoin sales to fund healthcare programs, environmental projects, and salaries for government workers. This shows how the small Himalayan country is using cryptocurrency as part of its national financial strategy.
A Small Country With a Smart Bitcoin Plan
Recently, blockchain analytics company Arkham Intelligence reported that Bhutan moved 175 Bitcoin (about $11.85 million) from its main government wallet to another crypto address.
The new address had already received 184 Bitcoin earlier, but the coins have not been sold yet. Even though no official sale has been confirmed, the transfer follows a pattern Bhutan has used before.
According to Arkham’s data, Bhutan usually sells Bitcoin in small batches worth $5–10 million at a time. In February, a similar transfer was followed by a $7 million sale to crypto trading firm QCP Capital based in Singapore.
How Bhutan Got So Much Bitcoin
Unlike many countries, Bhutan did not buy Bitcoin from crypto exchanges. Instead, it mined the cryptocurrency itself. The country started mining Bitcoin in 2019, using electricity generated by its large hydropower plants.
During the summer, Bhutan produces more electricity than it needs because rivers flow strongly. Instead of wasting that extra energy, the government uses it to power Bitcoin mining machines.
Over time, this strategy helped Bhutan mine around 13,000 Bitcoin, making it one of the biggest government holders of the cryptocurrency.
Today, Bhutan still holds about 5,400 Bitcoin, according to Arkham Intelligence. Globally, the country ranks seventh among nations holding Bitcoin, while the United States holds the largest amount.
Mining Became Harder After 2024
In April 2024, Bitcoin’s halving event reduced mining rewards to 3.125 Bitcoin per block. This made mining less profitable. Because of this, Bhutan has started selling Bitcoin more frequently to generate revenue.
Managed by Bhutan’s Sovereign Fund
All of Bhutan’s crypto assets are managed by Druk Holding and Investments, the country’s sovereign wealth fund. The fund also holds some Ethereum and a memecoin called KiboShib.
In simple terms, Bhutan treats Bitcoin like a financial resource. The country mines it when electricity is cheap and sells it when prices are good, using the money to support public services and government expenses.
