Bhutan Reaches $1 Billion in Bitcoin Holdings. The country leverages hydroelectric power for mining to strengthen its economy and diversify its income.
The Royal Government of Bhutan has reached a significant milestone in its Bitcoin (BTC) investment strategy. According to data from Arkham Intelligence, the country’s Bitcoin stash has now crossed the $1 billion mark. This marks a significant achievement for Bhutan, which has rapidly become one of the world’s largest government holders of Bitcoin.
Economic factors initially occasioned Bhutan’s entry into the world of Bitcoin. The COVID-19 pandemic affected its tourism sector, one of its biggest GDP sources. Bhutan changed its strategy by using excess power to mine Bitcoin instead. This strategy has proved beneficial because the value of Bitcoin has greatly increased, especially due to the current bull run in the cryptocurrency market.
According to the government, Bhutan is currently the world’s fourth-largest owner of Bitcoin. According to data obtained from Arkham Intelligence, Druk Holdings, which controls the Royal Government of Bhutan’s BTC activities, possesses 1,033,855,613.15 USD in BTC. Although the government has not recently announced new mining or purchase plans, the overall value of Bitcoin has increased, resulting in more value in its reserves.
Bhutan Strengthens Economy with Bitcoin Mining and Reserves
Bhutan’s decision to mine Bitcoin is a wise utilization of the country’s excess energy. The government has significant power potential from hydroelectric power stations, many of which were idle. Thus, directing this excess energy towards Bitcoin mining has brought new income for Bhutan and new types of reserves to the country. Bitcoin reserves have become essential to the country’s economic plan, allowing it to compensate for the lost revenue from tourism and stabilize its economy.
The Royal Government of Bhutan made headlines in late October when it deposited roughly 929 Bitcoin worth $66.1 million to a Binance deposit address. Later on, this decision raised questions about the government’s plans for maintaining its increasing investment in cryptocurrencies.
With Bhutan increasing its Bitcoin stock, it is setting itself up to become an emerging market player in the cryptocurrency world. The small South Asian nation holds over $1 billion worth of Bitcoin. It is one of the largest government investors in digital assets, meaning that more nations may start adopting cryptocurrencies.
