Bhutan’s Bitcoin Holdings Exceed El Salvador

Key Points:

• There are reports that Bhutan’s Druk Holdings owns 13,029 BTC, more than twice what El Salvador holds.
• Bhutan’s Bitcoin comes from mining operations, unlike the stash El Salvador owns, which has been purchased at a far more unfavourable price.
• Bhutan’s crypto assets make up a significant portion of its GDP, with more planned expansion in mining.

Recent reports from Arkham Intelligence have pointed out that Bhutan has emerged as the leading player in the Bitcoin market and has surged past El Salvador regarding Bitcoin holdings. This platform reported on September 16 that Druk Holdings, or DHI, is an investment arm for Bhutan, and it controls as many as 13,029 BTC, which is worth roughly $758 million at the present price. This amount is twice as large as what El Salvador has.

Bhutan’s Bitcoin Holdings

According to reports, the BTC Bhutan holds comes from mining activities it started in April 2019. Data from Arkham further highlights that Druk Holdings also holds 656 ETH (~ $1.5 million), adding smaller chunks of BNB and Polygon tokens in its possession. Hydroelectricity powers the mining, helping Bhutan achieve its carbon-neutral mining vision.

The report further adds that Bhutan’s Bitcoin holdings represent approximately 25% of its projected GDP in 2024. That’s a pretty substantial figure considering its small population of about 790,000.

Comparison with El Salvador

In comparison, El Salvador bought Bitcoin in September 2021 at an average BTC price of $51,700. Currently, Bhutan holds 5,875 BTC, which is worth $331 million and accounts for about 45% of Bhutan’s total reserves. El Salvador acquired its Bitcoin at an average price of $43,900, representing a gain of 32.6% if its holdings are valued at today’s prices. On the other hand, Bhutan’s Bitcoin reflects a different set of market dynamics.

While both countries use renewable energy in mining, Bhutan uses hydroelectric power, and El Salvador does so through geothermal volcanic energy. Additionally, Bhutan is increasing its mining capacity to be capable of scaling up by 500 megawatts by mid-2025.