Nestled in the Himalayas, Bhutan is famed for prioritizing Gross National Happiness over GDP, its pristine forests, and a culture steeped in Buddhism. Yet this unlikely nation has emerged as an unexpected player in the volatile world of cryptocurrency.
As of December 2024, Bhutan ranked as the fifth-largest national holder of Bitcoin globally, trailing only the US, China, the UK, and Ukraine. How did a country of 800,000 people, with no prior crypto footprint, quietly amass over 13,000 Bitcoin? The answer lies in hydropower, economic foresight, and a pandemic-era gamble.
Hydropower meets blockchain
Bhutan’s journey into Bitcoin began around 2019, though its foundations were laid decades earlier. The nation generates nearly 100% of its electricity from renewable hydropower, thanks to glacial rivers and strategic dams built to fuel industries and exports. But until recently, much of this energy went underutilized—especially during monsoon seasons when reservoirs overflowed.
Enter Druk Holding & Investments (DHI), Bhutan’s sovereign wealth arm. Facing economic stagnation and a tourism-dependent economy ravaged by COVID-19, DHI saw an opportunity: repurpose surplus green energy to mine Bitcoin. Mining, the energy-intensive process of validating blockchain transactions, is often criticized for its carbon footprint. But Bhutan’s approach was inherently sustainable.
By early 2021, Bhutan had discreetly established mining farms near hydropower plants, avoiding the fossil-fuel backlash plaguing miners elsewhere. The setup was a closed loop: cheap, abundant renewable energy powered mining rigs, and profits were reinvested into national infrastructure.
A strategic hedge against economic uncertainty
Bhutan’s foray into Bitcoin wasn’t just about tech experimentation. The pandemic exposed vulnerabilities in its US$3 billion economy, which relies heavily on tourism and agricultural exports. Youth unemployment soared to 22.6%, and foreign reserves dwindled. Bitcoin offered a dual solution: a high-risk, high-reward asset to diversify reserves and a catalyst for tech-sector growth.
Unlike El Salvador’s legal tender pivot, Bhutan treated Bitcoin as a strategic reserve—accumulating coins during market downturns.
In 2023, Bhutan partnered with Bitdeer, a Nasdaq-listed Singapore-based mining firm, to expand operations. The goal: boost mining capacity by 500% by early 2025, funded partly by a US$500 million crypto-backed convertible note.
The launch of Gelephu Mindfulness City (GMC) marks Bhutan’s most ambitious crypto pivot yet. Designed as a Special Administrative Region, GMC will formally recognize Bitcoin, Ether, and BNB as part of its strategic reserves, prioritizing assets with “large market capitalizations and deep liquidity” to minimize price volatility risks. Beyond mere speculation, GMC represents a calculated strategy to diversify national reserves while attracting blockchain innovators.
GMC embodies Bhutan’s drive to boost its Gross National Happiness Index, which balances economic growth with cultural and environmental stewardship. GMC’s approach treats crypto as a reserve asset, insulating citizens from market swings while capitalizing on institutional adoption.

The future is innovation
Bhutan’s crypto ambitions extend beyond hoarding digital gold. The government is exploring blockchain applications for land registry, voting, and carbon credit trading—a natural fit for its climate-conscious ethos. Meanwhile, the capital city of Thimphu’s tech hubs are nurturing startups, aiming to retain a youth population increasingly drawn abroad for jobs.
Bhutan’s story challenges stereotypes of crypto as a tool of speculation or anarchic finance. Here, Bitcoin serves as a pragmatic hedge for a small nation navigating globalization and climate change. While risks remain in the journey, Bhutan’s mix of sustainability and strategic timing offers a unique model—one where Gross National Happiness and blockchain might just coexist.
The Land of the Thunder Dragon has already secured its place in crypto lore: proof that even the unlikeliest players can rewrite the rules.
Also Read – How a bold gamble on Bitcoin sparked a national revival in El Salvador