Key Points
- Bhutan, with less than a million inhabitants, is the fourth-largest sovereign owner of Bitcoin in the world.
- The South Asian Kingdom increased its Bitcoin holdings through mining operations.
Bhutan, a small nation with less than a million residents, holds the fourth-largest sovereign ownership of Bitcoin (BTC) globally.
As per Arkham, Bhutan owns more than 13,000 Bitcoin tokens, valued at over $750 million as of mid-September. The only countries with larger Bitcoin holdings are the U.S., China, and the U.K. Bhutan surpassed El Salvador, securing the fourth position among world governments that collectively control over 2.2% of Bitcoin’s total supply, according to CoinGecko.
Bitcoin Accumulation Through Mining
Unlike most authorities in the rankings, who procured Bitcoin through criminal seizures, crackdowns, or daily purchases like El Salvador, Bhutan increased its Bitcoin reserves through mining.
Arkham disclosed that Bhutan expanded its Bitcoin mining operations since early 2023. The nation, through its investment arm, Druk Holdings, utilized its mountainous terrain to establish several Bitcoin mining facilities. In one instance, Bhutan converted an abandoned Education City project into a large-scale cryptocurrency mining complex. There is no indication that the government intends to sell its Bitcoin, and its overall crypto strategy remains largely unknown.
Global Increase in Bitcoin Holdings
The intersection between national balance sheets and Bitcoin has been on the rise as global blockchain adoption surged. Even central banks in Norway and Switzerland have obtained exposure to the so-called digital gold.
Some view this trend as bullish for Bitcoin, but questions arise about whether government ownership of Bitcoin aligns with the ethos of Satoshi Nakamoto, the pseudonymous creator of Bitcoin. As adoption progresses and companies like Arkham discover more sovereign Bitcoin holdings, two questions hang over the industry: Who else owns Bitcoin, and what are their plans with it?
