Bhutan Uses Hydroelectric Bitcoin Mining to Fund Government & Public Services

TLDR

• Bhutan holds 13,029 BTC ($1.1 billion), making it the fifth largest nation-state Bitcoin holder
• The country uses Bitcoin reserves to fund public servant salaries, healthcare, and environmental projects
• Bhutan has been mining Bitcoin since 2019 using its abundant hydroelectric resources
• Prime Minister Tshering Tobgay calls Bitcoin “a strategic reserve” that has proved invaluable
• In January, Bhutan designated Bitcoin, Ethereum, and BNB as strategic reserve assets for its Gelephu Mindfulness City

Bhutan’s Prime Minister Tshering Tobgay has revealed how the country’s growing Bitcoin reserves are funding essential public services, including government salaries and healthcare programs. The small Himalayan kingdom has quietly become one of the world’s leading government holders of cryptocurrency.

Speaking to Al Jazeera on March 6, 2025, Tobgay described Bitcoin as “a strategic reserve” for Bhutan. The country now holds 13,029 BTC worth over $1.1 billion, making it the fifth largest holder among nation-states.

“We have used Bitcoin to provide free healthcare, for environment, but these are minor. The main use of Bitcoin has been to finance the salaries of public servants,” Tobgay stated in the interview.

The kingdom began its Bitcoin mining operations in 2019. Bhutan leverages its plentiful water resources to power these operations with 100% clean hydroelectric energy.

This strategy addresses a critical revenue challenge for the small nation. Bhutan would struggle to compete globally in large-scale manufacturing or agriculture.

The Bitcoin mining initiative has also helped offset declining tourism revenue. Tourism has traditionally been a major economic driver for the country known for its commitment to “Gross National Happiness.”

Tobgay questioned why more governments aren’t pursuing similar strategies. He noted that hundreds of individuals have already profited from Bitcoin investments.

“The world is progressively moving towards using Bitcoin as a currency,”

the Prime Minister said. He urged other nations to consider cryptocurrency’s potential for building economic resilience.

Bhutan’s interest extends beyond just Bitcoin. In January 2025, the country designated Bitcoin, Ethereum, and BNB as strategic reserve assets for its recently established special administrative region, Gelephu Mindfulness City.

Ujjwal Dahal, CEO of Bhutan’s sovereign wealth holding company, emphasized the importance of embracing blockchain technology. “I think you cannot run away from blockchain. Cannot run away from AI,” he told Al Jazeera.

Dahal described how these technologies will transform finance. “How blockchain and AI will combine the industry of money, if I may say, and how money flows from one hand to another, because it’s one of the biggest innovation in the space of money, for humanity,” he explained.

This approach to cryptocurrency comes as other nations consider similar strategies. U.S. President Donald Trump has recently discussed Bitcoin strategic reserve plans.

Market participants have praised Bhutan as a pioneer in government cryptocurrency adoption. Many see the country as setting an example for how nations can incorporate digital assets into their financial strategies.

The $1.1 billion Bitcoin reserve represents a major asset for Bhutan, a country with just over 700,000 citizens. This translates to roughly $1,500 worth of Bitcoin per citizen.

Bhutan’s cryptocurrency mining benefits from the country’s renewable energy surplus. Its mountainous terrain and flowing rivers provide ideal conditions for hydroelectric power generation.

The country’s Bitcoin mining operation represents a forward-thinking approach to national finance. As cryptocurrency gains mainstream acceptance, Bhutan has positioned itself at the forefront of this financial evolution.

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