Bhutan Ranks as Fourth-Largest Bitcoin Holder Among Sovereign Nations

Bhutan has emerged as the fourth-largest sovereign holder of Bitcoin globally, according to data from blockchain analytics firm Arkham.

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The country, with a population of under one million, reportedly holds over 13,000 Bitcoin, valued at more than $750 million as of today. Bhutan’s Bitcoin holdings place it behind the United States, China, and the United Kingdom, surpassing El Salvador, which had previously been in fourth place. Meanwhile, a recent CoinGecko data revealed that governments worldwide collectively control over 2.2% of Bitcoin’s total supply.

While most countries with significant Bitcoin reserves acquired their holdings through seizures or daily purchases, Bhutan has taken a different approach. The nation has built its Bitcoin reserves through mining rather than buying Bitcoin on the open market. “Bhutan’s government has expanded its mining operations since early 2023,” Arkham reported. This effort is led by Druk Holdings, the country’s investment arm, which has been using Bhutan’s mountainous terrain to set up Bitcoin mining facilities.

BREAKING: BHUTAN GOVERNMENT’S $750M BTC NOW ON ARKHAM

Bhutan’s Bitcoin holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by the Kingdom of Bhutan’s investment arm, Druk Holdings.

Arkham is the first to publicly identify these… pic.twitter.com/a8ScUNJJ9F
Related: Silk Road Bitcoin Wallets Wake After 10 Years, Move $3M Suddenly
— Arkham (@ArkhamIntel) September 16, 2024

Arkham’s report notes that the country leveraged its natural resources to expand its mining operations. “Through its investment arm, Druk Holdings, the nation leveraged its mountainous landscape to set up several Bitcoin mining facilities,” the report stated. This includes converting an abandoned Education City project into a large-scale crypto-mining complex. Bhutan’s government has not disclosed detailed plans for its future Bitcoin strategy, but there is no current indication of an intention to sell any of its Bitcoin holdings.

Unlike other nations that acquired Bitcoin primarily through legal seizures related to criminal crackdowns, the country’s strategy centers on mining activities. Bhutan’s unique approach adds a new dimension to how sovereign states are engaging with cryptocurrency.

The country’s significant Bitcoin holdings come amid a trend where national governments are becoming more involved in cryptocurrency. “National balance sheets and BTC increasingly intersected as global blockchain adoption surged,” the Arkham report stated. Even central banks in countries such as Norway and Switzerland have started to gain exposure to Bitcoin. The growing interest of sovereign states in Bitcoin holdings is becoming a notable development in cryptocurrency.

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LAWRENCE

Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.

Lawrence holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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