A Country Betting 9% of Its GDP on Bitcoin
Bhutan, a small Buddhist kingdom nestled in the Himalayas, made a secret and massive bet on Bitcoin mining, investing up to 9% of its GDP in cryptocurrency infrastructure. Using its abundant and cheap hydroelectric power, the country began mining Bitcoin around 2019–2020 under the direction of its sovereign wealth fund, Druk Holding and Investments (DHI), led by U.S.-educated technocrat Ujjwal Deep Dahal.
At its peak, Bhutan held around 13,000 BTC. It sold portions to cover national expenses, including a 50% salary raise for civil servants in 2023, and committed up to 10,000 BTC (worth ~$1 billion) to fund a massive special economic zone—the Gelephu Mindfulness City (GMC)—aimed at attracting global investment.
The move was a strategic effort to monetize excess energy, reduce dependence on the Indian rupee, and diversify its economy. However, the large-scale import of mining equipment caused foreign reserves to drop and the current account deficit to spike to 34.3% of GDP in 2022/23.
While the nation’s macroeconomic indicators improved with the 2025 Bitcoin bull run, the benefits have not fully reached its people. Youth unemployment remains high at 18%, and a significant portion of the population—nearly 8%—has emigrated abroad due to limited opportunities, highlighting the disconnect between national crypto ambitions and everyday economic reality.
marsbit04/01 03:40
