Bhutan’s Bitcoin mining stash exceeds $750m: Arkham

As a seasoned financial analyst with over two decades of experience under my belt, I find myself increasingly intrigued by the global adoption and integration of cryptocurrencies, especially Bitcoin (BTC). The recent revelation that Bhutan, a small but influential nation, has amassed a significant BTC stash through mining operations is nothing short of remarkable.


Despite having fewer than a million residents, Bhutan stands as the fourth-largest independent nation with significant holdings of Bitcoin.

As stated by Arkham, the Kingdom of Bhutan possesses more than 13,000 Bitcoins (BTC), with a combined worth exceeding $750 million as of September 16th. Notably, only the United States, China, and the United Kingdom hold larger amounts of Bitcoin. By doing so, Bhutan has surpassed El Salvador to claim the fourth spot among these nations. Furthermore, Bhutan’s Bitcoin holdings represent approximately 2.2% of the total supply of BTC, according to CoinGecko, placing it among a group of world governments controlling significant portions of this digital currency.

NEWS FLASH: BHUTAN’S $750M BITCOIN ASSETS NOW LISTED ON ARKHAM

The Bhutanese government’s Bitcoin assets, mined through the operations of Druk Holdings & Investments, have been officially listed on Arkham.

Arkham is the first to publicly acknowledge these digital assets…

— Arkham (@ArkhamIntel) September 16, 2024

In contrast to many other authorities who amassed Bitcoin (BTC) from criminal confiscations and suppression operations, or like El Salvador through regular buying, Bhutan increased its Bitcoin holdings by means of mining activities.

As a crypto investor, I’ve noticed that starting in early 2023, the South Asian Kingdom has been significantly increasing its Bitcoin mining activities. Using their strategic advantage of having mountainous landscapes, they’ve established multiple Bitcoin mining facilities through Druk Holdings, their investment arm.

In one case, Bhutan transformed an abandoned Education City project into a large-scale crypto mining complex. There’s no indication that the government plans to sell its BTC, but its overall crypto strategy remains largely unknown.

Bitcoin caches appear across the globe

As the global use of blockchain technology expanded significantly, the relationship between national balance sheets and Bitcoin became more intertwined. Notably, central banks in countries like Norway and Switzerland have been accumulating investments in this digital form of currency often referred to as “digital gold.

Some people view this advancement as positive for BTC, but there’s a question about whether it’s consistent with the principles of Satoshi Nakamoto, the anonymous creator of BTC, if governments are acquiring Bitcoin.

With the progression of adoption and firms such as Arkham discovering additional self-governed BTC reserves, two crucial questions arise within the industry: Which entities hold Bitcoin, and what are their intended uses for these assets?

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2024-09-16 21:25