Bhutan Makes a Historic Bitcoin Commitment
Bhutan has pledged up to $1 billion worth of Bitcoin from its sovereign reserves to support the long-term development of Gelephu Mindfulness City (GMC), marking one of the most significant state-backed crypto deployments globally.
The commitment, equivalent to as much as 10,000 BTC, was announced during King Jigme Khesar Namgyel Wangchuck’s National Day address, positioning Bitcoin as a strategic pillar of Bhutan’s future economic vision. GMC is being developed as a special administrative region in southern Bhutan, designed around principles of mindfulness, sustainability, and innovation.
Gelephu Mindfulness City as Bhutan’s Financial Engine
GMC is envisioned as a high-autonomy economic zone, operating under modern regulatory and financial frameworks distinct from the rest of the country. Officials have compared its role to Hong Kong’s relationship with China, serving as a gateway for innovation, finance, and technology.
The Bhutanese government emphasized that the Bitcoin allocation is not a short-term liquidation plan, but a long-term national investment intended to benefit the entire population.
How Bhutan Plans to Use Its Bitcoin Reserves
Officials stated that the Bitcoin deployment will occur gradually and cautiously, guided by principles of capital preservation and transparency. Possible strategies under consideration include using BTC as collateral, deploying risk-managed treasury and yield strategies, or holding reserves long-term to protect value.
Any use of Bitcoin, authorities stressed, will be governed by strict oversight and will avoid speculative monetization that could jeopardize national assets.
A Nation Built on Renewable Bitcoin Mining
Bhutan’s ability to make such a bold commitment stems from years of state-backed Bitcoin mining powered by renewable energy, primarily hydropower. According to Arkham Intelligence, Bhutan currently holds around 5,900 BTC, worth roughly $519 million at current prices, making it the fifth-largest government holder of Bitcoin globally.
These reserves have been accumulated since 2019 through government-funded mining operations overseen by Druk Holding & Investments, Bhutan’s sovereign investment arm.
One of the country’s largest mining facilities occupies land originally intended for the abandoned $1 billion “Education City” project, with existing infrastructure later repurposed for industrial-scale mining.
Strategic Partnerships and Energy Expansion
Bhutan recently signed a strategic Memorandum of Understanding with Cumberland DRW, focused on Bitcoin reserve management, stablecoins, mining operations, and AI computing infrastructure within GMC. The initiative is being led locally by Green Digital Ltd, aligning with the King’s vision for finance and energy innovation.
At the same time, state-owned Druk Green Power Corporation is advancing a 120-megawatt solar project under its Solar Farm Expansion Plan, aiming to deploy at least 310 megawatts of new solar capacity nationwide. This renewable push further reinforces Bhutan’s strategy of pairing clean energy with digital assets.
