Bhutan Bitcoin Accumulation Hit $1.1B Marking 34% of its Total GDP

The Kingdom of Bhutan holds Bitcoin reserves valued at approximately $1.1 billion, representing a significant 34% of its Gross Domestic Product (GDP), which has ignited considerable interest in the nation’s unconventional economic strategy.

Notably, the substantial investment, previously undisclosed, challenges conventional wisdom regarding sovereign wealth management and highlights the evolving role of cryptocurrency in international finance.

Bhutan’s commitment to environmental sustainability and Gross National Happiness (GNH) is well-documented, Its acquisition, ranging from diversification of national reserves to hedging against economic instability, or even a more strategic long-term bet on the future of digital currency.

Bhutan Accumulation Heightens Despite Sales this November

Reports indicating the commencement of Bitcoin sales by the Bhutanese government complicate the market narrative on November 14. The recent astronomic sale of 367 Bitcoin ( equivalent to $34,769,488.25) through Binance, marks a significant development.

Bhutan’s recent sale of Bitcoin, totaling nearly $100 million in two transactions (one for $66 million following Bitcoin’s surge to $70,000 and a subsequent sale), represents a significant development in the nation’s cryptocurrency strategy.

Despite these sales, Bhutan retains a substantial Bitcoin holding of 12,206 BTC, currently valued at approximately $1.11 billion, managed by Druk Holding & Investments, placing it among the top five national holders globally, behind the United States, China, the United Kingdom, and Ukraine.

This contrasts sharply with other nations’ typical practices of acquiring Bitcoin through asset seizures. Bhutan’s approach, leveraging its abundant hydroelectric resources for Bitcoin mining, indicates a proactive and potentially sophisticated management of its cryptocurrency assets, evidenced by strategic timing in the sale of its holdings.

This contrasts with El Salvador’s use of its Bitcoin holdings to address national debt and fund initiatives like Bitcoin City.

Meanwhile, the growing global interest in cryptocurrency is stimulating legislative action in the United States, with proposals ranging from Senator Lummis’s bill regarding Federal Reserve gold conversion to a Pennsylvania bill suggesting allocating 10% of state funds to crypto as an inflation hedge, reflecting a trend influenced by Wyoming’s pioneering approach to crypto regulation.