Bhutan’s Bitcoin holdings surpass $1b

The Himalayan kingdom of Bhutan, known for its emphasis on happiness, has seen its Bitcoin (BTC) holdings soar past $1 billion as the cryptocurrency market continues its strong rally.

According to data shared by the blockchain intelligence platform Arkham on November 11, 2024, the Royal Government of Bhutan now holds 12,568 BTC, valued at approximately $1.08 billion as Bitcoin’s price surpassed the $82,000 level.

Significant Growth:

This surge marks a notable increase compared to September 2023, when Bhutan held over 13,000 BTC, valued at around $750 million at that time. As Bitcoin’s price continues to climb, the value of Bhutan’s holdings has appreciated substantially, now exceeding $1 billion. Although this figure still lags behind the holdings of countries like the United States, China, and the United Kingdom, Bhutan now holds more Bitcoin than El Salvador, the first country to adopt Bitcoin as legal tender.

Bhutan’s Crypto Strategy:

Bhutan’s involvement with Bitcoin is not new. The country has been investing in digital assets for some time, even seeking partnerships with Bitcoin miners. In May 2023, Bhutan allocated 5% of its GDP to Bitcoin mining, taking advantage of the country’s renewable energy resources. This strategy reflects Bhutan’s long-term vision of integrating cryptocurrency into its national economic model, positioning Bitcoin not just as an asset but as part of its national reserves.

This approach contrasts with that of Germany, which sold off its entire holdings of 50,000 BTC earlier this year, contributing to selling pressure on the market. Bhutan’s decision to hold its Bitcoin reserve suggests a commitment to long-term accumulation, much like El Salvador and other nations that view Bitcoin as a store of value.

Potential for Further Growth:

Should Bitcoin’s price continue to rise, Bhutan’s holdings could increase in value even further. If Bitcoin reaches $86,000, the value of Bhutan’s 12,568 BTC could exceed $1.08 billion.

Comparison with Other Nations:

Bhutan’s strategy of holding Bitcoin is distinct from other countries. While El Salvador was the first to adopt Bitcoin as legal tender, the country holds its Bitcoin as part of its national reserve. On the other hand, the United States, under former President Donald Trump, has pledged to never sell its Bitcoin holdings, instead aiming to create a strategic Bitcoin reserve.

Bhutan’s growing Bitcoin holdings highlight its forward-thinking approach to digital assets, with a long-term strategy that aligns Bitcoin with the country’s broader economic goals. As Bitcoin’s price continues to rise, Bhutan’s holdings will likely appreciate, positioning the nation as a key player in the global Bitcoin accumulation trend. This strategy contrasts with countries like Germany, which have divested from Bitcoin, and aligns more closely with nations like El Salvador and the United States, which view Bitcoin as an essential part of their national financial systems.