The tiny Asian country located in the Himalayas is currently one of the largest holders of Bitcoin in the world.

Bhutan may have a tiny area, but it has achieved a huge milestone in its cryptocurrency investments Bitcoin worth $1 billion.

A strategic move

The landlocked Himalayan country is increasing its presence in the crypto space by building its Bitcoin reserves. This move, which analysts see as a strategic investment approach, has now yielded positive results.

This was reported by Arkham intelligence Bhutan has become a major player in the cryptocurrency industry, owning $1 billion worth of BTC, a remarkable feat for such a tiny country.

The Royal Government of Bhutan currently owns $1 billion worth of Bitcoin. pic.twitter.com/y8MQdCqMDy

— Arkham (@ArkhamIntel) November 11, 2024

Analysts said this key milestone highlighted the calculated steps taken by the Bhutanese government to diversify its economy to mitigate the impact of the Covid-19 pandemic on the tourism sector.

According to Arkham Intelligence, Druk Holdings, a company that manages BTC investments in Bhutan, holds 12,568 Bitcoins, which clearly places the Himalayan country as one of the top BTC investors in the world.

Harnessing hydropower resources in exchange for Bitcoin

Bhutan is using its copious hydropower to finance its BTC investments, as the country currently ranks fourth among cryptocurrency holding countries, joining the likes of El Salvador, a South American country that has declared BTC as its national currency.

BTCUSD trading at $91,005 on the daily chart: TradingView.com

Analysts said the Royal Government of Bhutan used its natural resources to continuously escalate its cryptocurrency reserves, which allowed it to achieve this milestone. They said the country has implemented a consistent Bitcoin mining strategy, leveraging its copious natural resources to keep operating costs low.

Prosperous hydropower resources lend a hand this Himalayan country sustain cryptocurrency mining, which is a major contributor to the country’s economy.

A scenic view of Bhutan. Image: Responsible Adventures

According to data, over 25% of the country’s GDP comes from mining Bitcoin. It shows that the Bhutanese government is committed to transforming cryptocurrency into an economic asset.

13,011 BTC have already been mined in the country, making it the government with the largest BTC resources.

Global trend

Analysts said Bhutan’s achievement shows a global trend in which many nations see the value of cryptocurrencies as an asset. Bhutan and El Salvador are among the countries that operate cryptocurrency as a financial tool.

The original cryptocurrency is gaining traction as more countries begin to explore the potential of BTC as part of their national reserve. One country, El Salvador, announced in 2021 that it would adopt Bitcoin as legal tender.

Bhutan is another prime example of a cryptocurrency buyer, but analysts say other countries can learn from Bhutan’s alternative model for hydropower mining strategies.

Featured image from OneSafe, chart from TradingView