This Country Quietly Mined Over 13,000 BTC, Overtaking El Salvador’s Bitcoin Reserves

In a surprising development, Bhutan has significantly increased its Bitcoin holdings, surpassing El Salvador and establishing itself as a major player in the cryptocurrency world.

According to data shared by crypto analytics firm Arkham Intelligence on Monday, the Himalayan kingdom now holds just over 13,000 BTC, valued at approximately $780 million. In addition to Bitcoin, Bhutan’s portfolio also includes 656 ETH worth $1.51 million and other altcoins like MATIC, BNB, and USDT.

Arkham further underscored that Bhutan’s Bitcoin assets have been acquired solely through mining, unlike countries like El Salvador, the U.S., and Germany, which often rely on acquisitions or judicial seizures.

“Bhutan is the 4th largest government with Bitcoin holdings on our platform, with over $750M in BTC. Unlike most governments, Bhutan’s BTC does not come from law enforcement asset seizures, but from Bitcoin mining operations, which have ramped up dramatically since early 2023,” the firm tweeted.

Notably, Bhutan’s mining operations, managed by the country’s investment arm, Druk Holdings, are spread across several key locations. The largest facility is located at the former site of the defunct Education City project.

Arkham identified this site through satellite imaging, underscoring Bhutan’s commitment to investing in state-of-the-art mining infrastructure. Significant investment, including a $500 million commitment in July 2023 by the nation to promote “green” mining technologies and practices, has driven the development of these facilities.

It is also important to note that Bhutan’s investment in Bitcoin mining represents nearly a third of its GDP, which was approximately $3 billion as of April 2024, according to the IMF. This substantial investment in digital assets highlights the country’s strategic focus on harnessing Bitcoin’s potential to enhance its economic stability and growth.

That said, with its sizable Bitcoin holdings, Bhutan now ranks fourth globally among countries with government-held reserves, moving ahead of El Salvador. El Salvador, which gained attention in 2021 for adopting Bitcoin as legal tender under President Nayib Bukele, currently holds 5,876 BTC, valued at approximately $350.8 million.

El Salvador has been steadily increasing its reserves through Bukele’s “1 Bitcoin a day” initiative, launched in November 2022. In March this year, Bukele emphasized that the program will persist until Bitcoin “becomes unaffordable with fiat currencies.”

Meanwhile, as Bhutan continues to grow its Bitcoin reserves steadily, it remains to be seen whether the nation will follow El Salvador in adopting Bitcoin as a legal tender. Such a move could further enhance Bhutan’s position in the global cryptocurrency market and potentially motivate other nations to join.