KEY POINTS
- Bhutan holds over 8,000 $BTC compared to El Salvador's more than 5,800 Bitcoins
- The Kingdom has constructed multiple Bitcoin mining sites, as per Arkham
- Crypto users welcomed the news, noting how the $BTC stash can be transitioned into a sovereign wealth fund
When it comes to governments holding Bitcoin, El Salvador is the most prominent name that comes up. The U.S. also pops up in the conversation, but unlike El Salvador, which has been buying 1 BTC daily, the United States' holdings are from seizures.
On Tuesday, a new jurisdiction soared above the ranks, stomping El Salvador's total holdings: Bhutan, officially the Kingdom of Bhutan, a small sovereign state in South Asia that's often been described as a hidden gem in the Himalayas.
A landlocked gem between superpowers
Bhutan's location has become an interesting point of discussion in geopolitics. It is situated directly between two of the world's superpowers: China and India.
Bhutan is the world's first carbon-negative country. It also measures quality of life by Gross National Happiness (GNH) over the common GDP that the U.S. and other countries use.
More than its pristine trekking paths and culture that many travelers around the world have found rather inspiring, it grabbed headlines Tuesday after blockchain analytics leader Arkham Intelligence revealed that it has found the Bhutan government's digital wallet.
Bhutan: The silent $BTC miner
Arkham revealed that the government's BTC holdings "come from Bitcoin mining operations carried out by the Kingdom of Bhutan's investment arm, Druk Holdings."
On the Arkham platform, the Kingdom is ranked fourth in the list of governments with the largest Bitcoin holdings. While El Salvador buys its BTC stash and the U.S. obtains its digital coins from law enforcement seizures, Bhutan has its own mining operations.
Arkham further revealed that Bhutan has constructed multiple BTC mining sites, the largest being the location of the now-defunct Education City project.
Bhutan is the 4th largest government with Bitcoin holdings on our platform, with over $750M in BTC.
— Arkham (@ArkhamIntel) September 16, 2024
Unlike most governments, Bhutan’s BTC does not come from law enforcement asset seizures, but from Bitcoin mining operations, which have ramped up dramatically since early 2023. pic.twitter.com/5bCRk9ajti
Lots of Bitcoin and some Ether
As of early Wednesday, the digital wallet linked to Druk Holdings has over 13,000 Bitcoins worth around $786 million. By comparison, El Salvador has over 5,800 BTC from its daily Bitcoin buying spree. The Druk-linked wallet also holds 656 Ethereum (ETH) worth more than $1.5 million.
There are various other cryptocurrencies within the wallet, but only in very small amounts compared to that of the wallet's BTC and ETH holding.
The wallet continues to stack up on Bitcoin, the latest being late Tuesday, when the wallet received over 8 BTC (more than $500,000) in two transactions.
Crypto users erupt in happiness
Crypto users, many of whom are Bitcoin enthusiasts and advocates, celebrated the news about Bhutan's BTC stacking. One user noted that it seems the Kingdom has set up a "sovereign wealth fund" for its people.
"Bhutan is said to one of the happiest countries in the world. I can see why they will remain so in the future as well," another user said. "Hardly any country in the world will be able to catch up," one user pointed out.
The Bhutan government has yet to make an official statement regarding the discovery of Druk Holdings' wallet.
