A small Asian country sitting in the Himalayas is now among the largest holders of Bitcoin in the world.
Bhutan might be occupying a small land area but it achieved a huge milestone in its cryptocurrency investments hitting $1 billion worth of Bitcoin.
Strategic Move
The landlocked Himalayan country has been increasing its presence in the crypto space by building its Bitcoin reserves. This move which analysts see as a strategic investment approach now bore positive results.
Arkham Intelligence reported that Bhutan became a major player in the cryptocurrency industry, owning $1 billion worth of BTC, an outstanding feat for such a small country.
The Royal Government of Bhutan now owns $1 Billion in Bitcoin. pic.twitter.com/y8MQdCqMDy
— Arkham (@ArkhamIntel) November 11, 2024
Analysts said that this key milestone highlighted the calculated steps taken by Bhutan's government to diversify its economy to mitigate the impact of the COVID pandemic on its tourism sector.
According to Arkham Intelligence, Druk Holdings, the firm managing the BTC investments of Bhutan, holds 12,568 Bitcoins, firmly placing the Himalayan country as one of the first BTC investors in the world.
Tapping Hydropower Resources For Bitcoin
Bhutan utilizes its abundant hydropower to fund its BTC investments as the country now ranked fourth among nations with crypto holdings, joining countries like El Salvador, a South American nation that declared BTC as its national currency.
BTCUSD trading at $91,005 on the daily chart: TradingView.com
Analysts said that the Royal Government of Bhutan leveraged its natural resources to continually increase its cryptocurrency reserves, allowing it to reach this milestone. They said that the country implemented a consistent Bitcoin mining strategy by tapping its rich natural resources to keep its operational costs low.
Its rich hydropower resources help the Himalayan country sustain its crypto mining which is a major contributor to the country's economy.
A scenic view of Bhutan. Image: Responsible Adventures
According to data, more than 25% of the country's GDP comes from mining Bitcoin. It shows that Bhutan's government is committed to turning cryptocurrency into an economic asset.
The country has already mined 13,011 BTC, making it a government with the biggest holding of BTC.
A Global Trend
Analysts said that the achievement of Bhutan shows a worldwide trend of many nations seeing the value of crypto as an asset. Bhutan and El Salvador are among the countries embracing cryptocurrency as a financial tool.
The firstborn cryptocurrency is gaining appeal as more countries are starting to explore the potential of BTC as part of their national reserve. One country, El Salvador, announced in 2021 that it will adopt Bitcoin as a legal tender.
Bhutan is another excellent example of a crypto adopter, but analysts said other countries can learn from Bhutan's alternative model of hydropower-powered mining strategy.
Featured image from OneSafe, chart from TradingView
