Bhutan Has Mined Bitcoin Since It Was Worth $5K: Report

The country is aiming to generate positive, sustainable returns across a range of asset classes, including crypto, by tapping into its extensive network of hydroelectricity


Useacoin/Shutterstock modified by Blockworks


The investment arm of Bhutan has been mining bitcoin for a “few years” to diversify the landlocked nation’s portfolio.

Druk Holding and Investments (DHI) CEO Ujjwal Deep Dahal told local media outlet The Bhutanese that mining bitcoin is part of a long-term investment strategy.

Bhutan is using digital assets to finance its operations, but it’s holding onto some for the future — anticipating an increase in value following Bitcoin’s halving in 2024, per the report.

The country is reportedly aiming to generate positive, sustainable returns across a range of asset classes, including crypto. It’s said to be mining bitcoin (BTC) with its extensive network of hydroelectricity in a bid to offset costs and environmental harms.

Bhutan’s high mountainous region and hydro projects present marginally cheaper production costs for an otherwise expensive endeavor. This has allowed DHI to funnel energy savings into buying up more mining rigs, according to Dahal.

Bhutan has paid back its bitcoin loans

Mining bitcoin is also part of the nation’s attempt to diversify its economy. In previous years, the government has tried addressing self-sufficiency woes by tapping sectors from tourism to agriculture.

DHI reportedly began mining BTC when its price was trading for roughly $5,000, although no specific dates were reported. 

Read more: Bhutan’s Investment Arm Invested Millions in Crypto, According to Celsius Documents

The last time bitcoin traded at those levels was throughout the Covid-19 market crash in March 2020. Prior to that, BTC had risen above $5,000 in Apr. 2019 after languishing below for months in the depths of the previous bear market.

Dahal also told local media the kingdom has managed to pay back everything owed to bankrupt crypto lenders BlockFi and Celsius, after it took out digital asset loans to fund further investments.

Last month, it was revealed that DHI made millions of dollars worth of deposits and withdrawals to the lenders in a number of cryptocurrencies including bitcoin, ether, and USDC.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors


Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts


North Korea suspected in breach of Indian exchange’s multisig wallet


Plus, Sanctum’s CLOUD token has officially launched — but not without problems


It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.