Bhutan’s Prime Minister Explains How Bitcoin Strengthened National Budget

• Bhutan is using hydropower-driven Bitcoin mining to fund government salaries, healthcare, and environmental projects while maintaining carbon neutrality.
• With over 10,600 Bitcoin worth $660 million, Bhutan positions itself among the top five government Bitcoin holders globally.

Bhutan, the small kingdom, is embracing a new kind of treasure—Bitcoin. With a national BTC reserve valued at around $660 million, Bhutan is setting a precedent in digital finance, leveraging hydropower-driven Bitcoin mining to fuel its economy.

JUST IN: Bhutan’s PM tells how strategic #Bitcoin reserve helped finance their nation’s expenses pic.twitter.com/4rm08vM3J1

— Bitcoin Magazine (@BitcoinMagazine) March 6, 2025

Prime Minister Dasho Tshering Tobgay views Bitcoin beyond an investment. He highlighted its role in funding public services, including healthcare and environmental initiatives, while emphasizing its primary function in financing government salaries.

We have used Bitcoin for health, to provide free health care for our environment, but these are minor. The main use of Bitcoin has been to finance the salaries of public servants,

Bhutan’s Bitcoin mining farms are strategically placed across the country, relying entirely on hydropower from the Himalayas. Unlike conventional mining, which raises environmental concerns, Bhutan’s operation remains carbon neutral, using renewable energy to generate millions in weekly revenue.

Bhutan Bets on Bitcoin — Can Digital Assets Revive Economy?

While El Salvador was the first country to make Bitcoin a part of its national reserve, Bhutan’s model presents a unique approach. For a country of just 770,000 people, where large-scale manufacturing and agriculture face significant challenges, the shift toward digital assets provides a much-needed economic boost.

Bhutan’s efforts to embrace digital finance extend beyond Bitcoin mining. The country recently launched Gelephu Mindfulness City, a special economic zone designed to attract foreign investment. The initiative aligns with Bhutan’s vision of sustainability, innovation, and economic resilience.

Bhutan’s Gelephu Mindfulness City Pioneers Adoption of BTC, ETH and BNB and Other Digital Assets in City’s Strategic Reserves. https://t.co/O0sjlhiTDL pic.twitter.com/CfKVSUlcS1

— gmcbhutan (@gmcbhutan) January 8, 2025

A May World Bank report warned that Bhutan’s fiscal deficit was widening, emphasizing the need for foreign investment to sustain growth. In response, the government introduced policies aimed at accumulating digital assets and fostering a tech-driven economy.

According to Jagdeep Sidhu, Core Developer at Syscoin, Bhutan’s energy abundance makes it an ideal location for Bitcoin mining. 

Bitcoin mining, in particular, is such a good tool for leveraging various forms of renewable and stranded energy,

Bhutan’s $660 Million Crypto Holdings

Since April 2019, Bhutan has been using its massive hydropower reserves to mine Bitcoin. Over the years, the country has accumulated more than 10.635K Bitcoin, placing it among the top five government Bitcoin holders worldwide. At today’s market value, that equates to approximately $660 million, according to Arkham data.

Source: Arkham

Despite concerns over Bitcoin’s energy consumption, Bhutan’s reliance on hydropower significantly reduces its carbon footprint, making it one of the most eco-friendly mining operations globally. Instead of exporting excess electricity at low rates, the government has opted to maximize revenue through Bitcoin mining.

A Bhutanese citizen expressed confidence in the government’s approach, stating: 

I would be very worried if our government was buying Bitcoin, trading in Bitcoin, but I think the kind of reassurance for us Bhutanese citizens is that the government is mining it.