Author: Hameiz; Source: Hameiz Digital Square

Bhutan, a small country in South Asia with a land area of 38,400 square kilometers and a population of only 885,000, is economically underdeveloped but is a major holder of BTC, and is expected to be a big winner in the digital economy era.

(I)

According to the blockchain analysis company Arkham Intelligence, the Kingdom of Bhutan is the fourth largest government holder of BTC in the world, holding 13036 BTC, with a current Market Cap of 7.5 billion dollars.

According to Arkham's data, the Himalayan kingdom adjacent to major countries such as China and India has BTC reserves managed by the national investment institution Druk Holding & Investments (DHI), which are twice as many as the well-known El Salvador, which holds 5876 BTC worth $353 million.

The BTC reserve of the Kingdom of Bhutan is the result of carrying out BTCMining business since 2019. The country has abundant hydropower resources, and the electricity industry is one of the pillars of the country's economy, accounting for nearly 20% of the GDP.

Although Bhutan has been involved in CryptoAssetMining for some time, new data from Arkham Intelligence reveals the true scale of its operation.

Unlike other countries that typically obtain BTC through slashing, Bhutan's wealth in encryption comes directly from its green power Mining Farm, which includes one of the largest BTC Mining facilities built on-site at the former Education City project.

In addition to BTC, according to Arkham's data, DHI also holds 656.013 ETH, as well as small amounts of BNB, MATIC, USDT and other cryptocurrencies.

(2)

In April 2023, Forbes published an article about Bhutan's participation in Cryptocurrency investment, which revealed that DHI had conducted transactions worth millions of dollars with the bankrupt Cryptocurrency lending platforms BlockFi and Celsius.

The bankruptcy application of these platforms revealed Bhutan's involvement in digital asset through the national investment agency DHI, triggering speculation and doubt about whether Bhutan incurred substantial losses through speculative trading.

According to local news reports, DHI later clarified that Bhutan borrowed some digital assets for certain investments, but all funds have been repaid without any loss of money,

Meanwhile, DHI also publicly disclosed that its BTCMining business has been ongoing since April 2019, when the price of BTC was around 5000 US dollars. Objectively speaking, Bhutan generates a large amount of low-cost green energy through river hydroelectric power, and its high mountain passes or mountain ranges provide perfect natural air conditioning locations for BTCMining.

In 2023, Bhutan established a strategic partnership with Bitdeer to further enhance its BTCMining ambition. It is reported that Bitdeer is a Mining company led by Wu Jihan, former CEO of Bitmain. This collaboration is expected to expand Bhutan's Mining capacity and raise $5 billion through a closed-end fund.

In June 2024, Cantor Fitzgerald, a senior Wall Street investment bank, stated that although Bitdeer is undervalued compared to other mining companies, it is expected to become one of the largest publicly listed mining companies by the end of the year.

（Three）

For domestic and international follows and even doubts, DHI has stated its relevant goals and strategies as the national investment agency of the Kingdom of Bhutan through a public declaration.

DHI claims that its sole objective is to improve the lives of Bhutanese people and create a secure future for future generations. To this end, a team of investment experts manages a diversified investment portfolio that holds assets of various local and global asset classes and investment themes.

"Our portfolio includes a range of investments across asset classes, including global stocks, fixed income, and venture capital in promising startups; domestic and international real estate; renewable energy including hydroelectric power; health technology, biotechnology, life sciences, and agricultural technology; as well as digital asset Mining and investment."

DHI also emphasized that following technology is not only for digital assets, but also for investing in the entire technology field to promote economic growth and improve the lives of ordinary Bhutanese people. Its forward-looking investment strategy is helping to establish a more connected, sustainable Bhutan by deepening local knowledge and participating in the rapidly evolving technological landscape.

"We are building relevant human capital for the future industry, ensuring that our citizens have the ability to participate in the global economy within Bhutan. For example, DHI has invested in building the world's first sovereign digital identity platform, which is designed and built locally, representing an important step in the country's ongoing digital transformation. These investments will ensure that Bhutan is at the forefront of global innovation."