New crypto-state emerges in the Himalayas: Bhutan has twice as many bitcoins as El Salvador

A tiny nation squeezed between China and India deep within the Himalayas, Bhutan has become an unlikely cryptocurrency hub. The kingdom might be more accustomed to making the travel pages for its bucolic landscapes and Buddhist monasteries, but it has now leapt to the forefront of the cryptosphere after the firm Arkham Intelligence revealed that the state-owned conglomerate Druk Holdings owns 13,011 bitcoins, slightly more than double the amount declared by El Salvador’s Nayib Bukele (5,877). At current prices, this stash is valued at about $780 million, which for a population of about 780,000 inhabitants represents $1,000 in bitcoins per citizen.

Arkham explains that this small fortune comes from bitcoin mining operations carried out by Bhutan’s investment arm, the aforementioned Druk Holdings, a name that means “thunder dragon.” This dragon appears on the country’s flag, holding jewels as a symbol of wealth. “We were able to corroborate the chronology of the mining activity with evolving satellite images of the facilities’ construction,” Arkham notes. The largest of these infrastructures is located on the grounds of the failed Education City, with which the authorities sought to tackle emigration and reduce unemployment, but which has ended up housing bitcoin factories that are in operation 24/7 instead of classrooms and books.

“Unlike most governments, Bhutan’s bitcoins come not from law enforcement seizure of assets, but from bitcoin mining operations, which have increased dramatically since early 2023,” states Arkham. Bhutan now ranks fourth among those countries with the most bitcoins, trailing only the U.S., China and the U.K.

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