As Bitcoin enters a new upward cycle, national-level Bitcoin "Pixiu" such as Bhutan are reaping substantial rewards. Meanwhile, as major economies like the United States gradually shift towards a positive and open attitude towards Bitcoin, it is expected that more countries will list Bitcoin as a national reserve asset in the future.

Written by: Nancy, PANews

With a population of only 800,000 but holding over 12,000 Bitcoins, the small country of Bhutan, located at the southern foot of the Himalayas, has attracted global attention with its bold Bitcoin betting strategy.

As Bitcoin enters a new upward cycle, national-level Bitcoin "Pixiu" such as Bhutan are reaping substantial rewards. Meanwhile, as major economies like the United States gradually shift towards a positive and open attitude towards Bitcoin, it is expected that more countries will list Bitcoin as a national reserve asset in the future.

Holding over $1.1 billion in assets, involved in Bitcoin mining years ago

Bhutan is rapidly accumulating wealth through its Bitcoin mining operations, becoming an important player in the crypto market.

According to Arkham data, the Bhutanese government mines through multiple pools such as AntPool, Braiins, and Foundry. As of November 13, the government of the Kingdom of Bhutan holds 12,576 Bitcoins, valued at over $1.1 billion. Based on known government holdings, Bhutan ranks fourth in the world, behind the United States, China, and the United Kingdom.

This holding amount is quite astonishing. If calculated based on Bhutan's GDP of $2.89 billion in 2022, the value of its Bitcoin holdings exceeds one-third of the country's GDP. In contrast, for example, El Salvador (with a population of 6.4 million) holds $500 million in Bitcoin, which accounts for less than 1.5% of its 2023 GDP of $34.02 billion.

Unlike most governments that acquire Bitcoin through asset seizures, Bhutan's Bitcoin comes from its active participation in Bitcoin mining. PANews previously reported that Bhutan has one of the largest hydropower resources in the world, creating a significant advantage for its participation in Bitcoin mining. Bhutan is an "early mover," having heavily invested in Bitcoin mining for several years. A government representative revealed that Bhutan "started mining Bitcoin a few years ago when the price was around $5,000."

In 2023, Bhutan's investment department, Druk Holding & Investments, partnered with the listed mining company Bit Deer to launch a $500 million crypto mining fund, aiming to establish a zero-carbon crypto mining base utilizing Bhutan's abundant hydropower. The construction of the mining data center is expected to be completed by the third quarter of 2024. Druk Holding & Investments CEO Ujjwal Deep Dahal explained that mining is the least risky way for Bhutan to participate in the crypto space, and the country will currently focus on Bitcoin mining.

On-chain data also confirms this. Arkham tracking data shows that Bhutan has been involved in the crypto space since at least February 2021. At that time, Bhutan received its first Bitcoin from AntPool, amounting to 0.0267 BTC, valued at about $1,280, which may have been Bhutan's initial foray into Bitcoin mining. Since then, Bhutan has regularly transferred some Bitcoin to exchanges, especially since the second half of last year, when Bhutan has almost monthly deposited hundreds or even thousands of Bitcoins onto trading platforms.

In addition to mining operations, Bhutan has also engaged in large-scale financial transactions with multiple crypto platforms. According to public information, Bhutan's total crypto transactions with platforms like BlockFi, Celsius, and Hodlnaut exceed $800 million, covering various crypto assets such as Bitcoin, Ethereum, and stablecoins.

Inclusion of Bitcoin in national reserves may become a trend

As the value of Bitcoin continues to rise, more and more countries are beginning to pay attention to and value this crypto asset, with Bhutan and El Salvador being typical examples.

In fact, in recent times, many countries around the world have proposed to include Bitcoin as a national reserve asset. For example, Donald Trump, when elected as President of the United States, promised to list Bitcoin as a strategic reserve asset, and his administration's crypto-friendly stance has greatly increased the feasibility of this idea; María Corina Machado, the leader of the Venezuelan opposition, also proposed establishing a national Bitcoin reserve system in the second half of this year, stating that Bitcoin is a "key component" in rebuilding Venezuela's economy and financial system, providing a "lifeline" for the Venezuelan people to bypass government-controlled exchange rates; Hong Kong Legislative Council member Wu Jiezhuang also tweeted months ago that Bitcoin and Web3 are important nodes in global development and should encourage global cooperation. In the future, under compliance, consideration could be given to including Bitcoin in the strategic financial reserves of countries or regions. It is believed that the Hong Kong government will responsibly and gradually open the market.

It is worth mentioning that due to the German government's sale of 50,000 Bitcoins this summer, the country missed out on at least $1.5 billion in profits. In October, Bitcoin supporter Samson Mow was invited to speak at the German Bundestag, discussing national-level Bitcoin strategy topics and proposing that Germany include its held Bitcoins in its strategic reserves.

Leaders from various sectors of the crypto industry have also predicted this trend. For example, Binance founder CZ predicts that many countries will use Bitcoin as a reserve, including other cryptocurrencies; Bitcoin Magazine CEO David Bailey recently disclosed on social media that at least one sovereign nation is actively acquiring Bitcoin and has entered the top five holders; Dennis Porter, founder of the Satoshi Action Fund, recently stated that he has received calls from five different countries regarding Bitcoin strategic reserves, hoping he would draft regulations to establish strategic Bitcoin reserves. He also emphasized, "Now, the successes we have achieved through legislation in the U.S. can be exported worldwide."

Crypto analyst PlanB analyzed that starting from March 2025, it is expected that countries like Bhutan, Argentina, and Dubai will successively adopt Bitcoin as legal tender, and starting in April, under Trump's push, the U.S. will also launch a Bitcoin strategic reserve. Other countries will follow suit, especially non-EU countries will join this wave.

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