Bhutan has mined millions of dollars worth of bitcoins in recent years, relying on cryptocurrency as a means of supporting the economy. The mountainous country has faced problems due to "brain drain", high unemployment and a decrease in the flow of tourists. But by selling the mined bitcoins, Bhutan was able to raise salaries for civil servants in order to reduce the number of specialists moving to other countries.
(Bhutan's mining farm on the territory of Education City. Data from: Arkham).
Cryptocurrency mining in Bhutan is carried out using the energy of hydroelectric power plants. During the summer months, the flow of water increases, and hydroelectric power plants generate more energy than necessary, so "mining bitcoin makes a lot of sense," said Bhutan's Prime Minister Tshering Tobgay in an interview with Al Jazeera.
"It's just a strategic choice that many people have made and earned billions of dollars, and I think governments should do that," Tobgay said.
The Kingdom of Bhutan is located between India and China, with an area of just over 38,000 square kilometers, but most of this land is unsuitable for agriculture due to the mountainous terrain. The country with a population of 800,000 people imports most of its food from India.
Bhutan is facing economic difficulties after the COVID-19 pandemic. According to Tobgay, the country can receive about 300 thousand tourists a year, and in 2024 it was visited by about 150 thousand. But one of the most serious symptoms of the crisis in Bhutan has been the outflow of young educated people to other countries due to the fact that local salaries cannot compete with the incomes of specialists in developed countries.
This brain drain has led to a reduction in government employees in Bhutan. And in 2023, the government sold $100 million worth of cryptocurrency to double the salaries of civil servants. This has reduced the outflow of specialists.
(Bhutan's crypto assets. Data from: Arkham).
Bitcoin mining is one of the few businesses that allows Bhutan to develop its economy while preserving its national values. Investments in the country are limited by the fact that Bhutan protects nature and does not allow the launch of production facilities that could harm the environment.
"We have been very attentive to foreign direct investment. We were careful not to allow industries that harm the environment, pollute the air, and undermine our culture," Tobgay said.
Bhutan produces more hydroelectric power than it consumes. The country exports its surplus to India. But bitcoin mining has become an alternative to exporting. Where tariffs are high, Bhutan sells electricity to India, and where tariffs are low, the country uses electricity to mine bitcoins.
The kingdom's cryptocurrency is stored in the wallet of the mining state-owned company Druk Holding & Investments. According to the Arkham analytical platform, as of April 2025, Bhutan owns 7,486 bitcoins (about $704 million at the current exchange rate). This is about 23% of the state's GDP, which in 2024 amounted to $3.02 billion.
