Bhutan's Bitcoin Reserve Shrinks by 76% Amid Hydropower Mining Expansion

Bhutan's Bitcoin reserve has significantly decreased from its peak of 13,000 BTC in October 2024 to approximately 3,119 BTC as of mid-May 2026. This represents a decline of 76% from the country's highest holdings.

The government's decision to divest these assets is aimed at funding the Gelephu Mindfulness City special economic zone, which hosts a large-scale mining operation in partnership with Bitdeer. The project uses hydropower generated from mountain rivers and has produced between 55 and 75 BTC weekly.

Bhutan's reliance on hydropower for mining has led to reduced exports to India, contributing to a widening trade deficit. The country has invested nearly $500 million in crypto-mining facilities between July 2021 and June 2023, including substantial equipment imports from China worth INR 4 billion in 2021 and INR 12 billion in 2022.

The government uses the profits generated from mining to cover public wages and fund infrastructure. In June 2023, Bhutan used $72 million in Bitcoin reserves to provide a 50% pay raise for all civil servants.