Thimphu, Sept 21: Bhutan on Saturday emerged as the fourth-largest Government holder of Bitcoin globally, owning over 13,011 BTC worth USD 780.49 million.
According to Arkham Intelligence, a public data application that allows users to analyse blockchain and cryptocurrency activities.
The value of Bitcoin held by Bhutan represents about 25 percent of the country’s gross domestic product (GDP) for 2023, which is estimated at Nu 249.39 billion or USD 3.02 billion, media reports said.
Globally, the United States holds the largest amount of Bitcoin, with 213,246 BTC, followed by China with 190,000 BTC, and the United Kingdom with 61,000 BTC.
According to Arkham Intelligence, Bhutan’s Bitcoin holdings differ from those of most governments, as they do not result from law enforcement asset seizures but from Bitcoin mining operations that have significantly increased since early 2023.
The country began its mining operations in 2019-2020, when Bitcoin was valued between USD 5,000 and USD 8,000, Kuensel reported.
Bhutan has established mining facilities at multiple locations, with the largest facility situated at the defunct Education City project.
Bhutan has acquired Bitcoin through extensive mining operations powered by renewable hydropower resources, led by Druk Holding and Investments.
The production cost of Bitcoin is influenced by several factors, including electricity prices, project capital costs, and the difficulty rate of mining.
Bhutan has invested USD 539 million in cryptocurrency mining operations over the last two fiscal years, from July 2021 to June 2023, according to a World Bank report.
During the period from July 2021 to June 2022, reserves dropped by 34.7 percent, falling from USD 1.27 billion to USD 832.9 million.
In terms of trade, Bhutan imported IT equipment valued at Nu 4 billion in 2023 and Nu 11.91 billion in 2022.
In 2021, Bhutan imported IT equipment worth Nu 4.33 billion.
(UNI)
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