In a statement released on Jan 8, Bhutan SAR announced plans to add Bitcoin, Ethereum, and BNB to its strategic reserves.
This makes Bhutan’s Gelephu Mindfulness City (GMC) the first Special Administrative Region (SAR) to hold cryptocurrencies.
Although only Bitcoin, Ethereum, and Binance Coin (BNB) are specified, the Bhutan SAR’s choice of assets includes digital assets with large market capitalizations and deep liquidity to ensure that buying and selling can occur without causing significant price impacts.
This inclusion of cryptocurrencies will enhance the SAR’s economic resilience and represents an upgrade from the country’s use of hydro-electric power in Bitcoin mining.
Bhutan’s Dive Into Cryptocurrencies
Bhutan is one of the Asian countries that has publicly embraced Bitcoin. On-chain data from Arkham showed that the country has $1.10 billion in Bitcoin from its investment arm, Druk Holdings. The previous figure was $780 million in September 2024.
Bhutan entered the crypto mining space after the COVID-19 pandemic impacted its $88 million annual tourism revenue. The country leveraged its abundant hydroelectric resources to power Bitcoin mining operations. According to Blockworks, Bhutan generates approximately 55 BTC per week from these operations.
Notably, Bhutan is able to support large-scale Bitcoin mining operations and remaining eco-friendly, through its hydro-electric power and a $500 million closed investment from Bitdeer.
As of this writing, Bhutan holds the fifth-largest amount of Bitcoin among countries. The United States, China, the United Kingdom, and Ukraine, are the top four holders.
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