The Himalayan Kingdom of Bhutan has entered the top three global leaders in terms of state Bitcoin reserves, which amounted to $1.3 billion as of June 2025 — nearly 40% of the country’s GDP.
This is reported by Finway
- According to Arkham Intelligence, Bhutan ranks third in the world among countries that hold Bitcoin.
- The country is implementing a number of cryptocurrency initiatives alongside large-scale mining.
How Bhutan Accumulated Bitcoin and Integrated Cryptocurrencies
Unlike many other countries that acquired cryptocurrency through confiscations or market purchases, Bhutan began deploying its own mining capabilities back in 2020, utilizing excess hydroelectric power. The first mining farm was set up near the Dochula mountain pass, and due to pandemic-related restrictions, engineers set up the equipment themselves.
“For Bhutan, this was obvious in many ways. 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, who implemented the project.
By 2022, the country had already launched four state mining centers. The increase in Bitcoin’s price from less than $10,000 in 2020 to over $100,000 in 2025 enabled the government to fund important budget needs, including salary increases for civil servants. Prime Minister Tshering Tobgay emphasized that this increase was fully funded by Bitcoin revenues.
Partnerships, Innovations, and Challenges
Thanks to collaboration with the Singaporean company Bitdeer Technologies, Bhutan has established two more mining farms. Bitdeer pays for energy consumption in U.S. dollars, allowing the government to build up its foreign currency reserves. According to satellite data, there are at least six mining facilities operating in the country, managed by Green Digital.
The high level of secrecy surrounding crypto assets raises concerns among some local officials. Many citizens only learned about the significant Bitcoin reserves after media reports surfaced about a 65% salary increase.
“I didn’t even know we had Bitcoin reserves. But it’s a smart way to diversify the economy,” admitted analyst Chencho Tshering.
Currently, the government does not plan to open new mining farms but is modernizing existing facilities. At the same time, the state is integrating cryptocurrencies into everyday life: tourists can pay for visas, airline tickets, and hotels in over 100 different cryptocurrencies. In the special region of the City of Mindfulness in Gelephu, cryptocurrencies will become an important part of the urban ecosystem.
Bhutan demonstrates one of the most original and effective strategies for implementing Web3 in public administration, allowing the country to become a leader in the digital economy among small states.