Bhutan: The Bitcoin Kingdom Under the Snow Mountains, a 40% GDP Gamble on Digital Gold

In the misty depths of the Himalayas, beside a hydropower station in the Thimphu Valley of Bhutan, rows of converted data centers are emitting a low hum. There are no chimneys or pollution, only the clean electricity generated by turbines driven by melted snow from the mountains, powering thousands of mining machines to “mine” Bitcoin.

This small country, known for its “National Happiness Index”, has quietly accumulated over 13,000 Bitcoins, valued at $1.3 billion, which is equivalent to 40% of its GDP.

While global powers are still debating the legitimacy of cryptocurrencies, 800,000 Bhutanese are using Bitcoin to pay salaries, enjoy free healthcare, and even tourists are buying street curry with ETH.

The Secret Origins of National Projects, the King’s “Digital Gold” Blueprint

In 2019, under the shadow of the pandemic, King Jigme Khesar Namgyel Wangchuck of Bhutan launched a project codenamed “Snow Mountain Treasury.” Faced with the shrinking tourism industry and a high youth unemployment rate, he issued a secret order to the national think tank Druk Holding: to convert surplus hydropower into strategic assets.

The initial experiment had only two computers. At an altitude of 3140 meters at the Douchula Pass, engineers set up mining machines using simple brackets. The cold climate was originally an advantage, but an overheating machine triggered the alarm, almost exposing the plan.

Five years later, this low-profile operation has evolved into four national-level mining sites. The installed capacity of the state-owned mining site has reached 420 megawatts, and it is collaborating with Singapore mining company Bitdeer to expand a new base of 600 megawatts.

The choice of mining site holds hidden secrets: building it directly next to a hydropower station results in almost zero transmission loss; utilizing electricity with nearly zero marginal cost during the wet season, producing 55-75 bitcoins per week. When Bitcoin surpasses $60,000 in 2024, the IMF report states unequivocally: “Bhutan’s mining profits are sufficient to repay central bank loans and generate profit.”

The Green Equation of Hydropower Mining: A Revolution in Resource Monetization for Small Nations

The Bitcoin miracle of Bhutan is essentially a precise transformation of the energy structure:

• Clean Energy Leverage

95% of the country’s electricity comes from hydropower, with a theoretical development potential of over 20,000 megawatts, yet the development rate is less than 2%.

• Carbon-negative mining closed loop

As one of the few net negative carbon emission countries in the world, hydropower mining completely offsets Bitcoin’s carbon footprint and is recognized by the United Nations as a model of sustainability.

• Cost Crushing Advantage

The power cost of the mining site is only 1/5 of the industrial electricity price, and it operates at nearly zero cost during the rainy season.

This model completely overturns the traditional logic of resource monetization. In the past, Bhutan needed to build expensive power grids to export hydropower; now, it only requires fiber optics to inject energy value into the global crypto market. As the Wall Street Journal commented: “While other countries argue over the electricity consumed by mining machines, Bhutan’s rivers are forging digital gold.”

On-chain experiments of Bitcoin finance, from civil servant salaries to universal healthcare

In 2023, civil servants in Bhutan received an unexpected surprise: a 50% salary increase. The source of the funds was the surplus from Bitcoin mining operations. This is just the tip of the iceberg for Bitcoin’s reinvestment into the real economy.

Bhutan has built the world’s first cryptocurrency economic closed loop:

• Livelihood Guarantee

Bitcoin reserves support a free healthcare system, with part of the profits subsidizing residents’ electricity prices.

• Tourism Revitalization

In May 2025, a national-level cryptocurrency payment system will be launched, allowing tourists to use over 100 cryptocurrencies to pay for visas and make purchases at roadside stalls.

• Debt Clearance

Selling part of the Bitcoin in 2024 to fill the fiscal gap and calm the civil servant salary arrears controversy.

The most radical application is in Gelephu, located at the southern border. This “cryptocurrency economic zone” lists Bitcoin, Ethereum, and BNB as legal reserve assets, offering zero tax rates to attract blockchain enterprises, aiming to serve a market of 2 billion people in South Asia. The chairman of the special zone, Lhotay Tshering, uses a vivid metaphor: “Cryptocurrency is like salt in curry, it will touch every corner.”

The Gamble of 40% GDP: Survival Strategies Under the Shadow of Risk

Huge profits come with huge risks. If Bitcoin plummets by 50%, Bhutan’s GDP will instantly evaporate by 20%, and the salary chain for civil servants may break. The deeper contradiction lies in:

• Transparency Controversy

Members of Congress have repeatedly demanded transparency on the flow of funds to mining sites, but the government has refused, citing “strategic security” as the reason.

• Energy Game

The expansion of mining sites has led to a surge in electricity demand from residents, and the risk of rising electricity prices may trigger social conflicts.

• Geopolitical Pressure

The US airstrikes on Bitcoin mining sites in Iran signal the arrival of the power struggle era.

Bhutan has chosen to hedge against volatility risks with long-termism. “We will not sell off due to short-term fluctuations, just as we will not discard the keys to the treasury because of gold price fluctuations,” a finance ministry official revealed to the media. This resilience stems from the unique national circumstances—Bitcoin reserves and the hydropower system are national assets that transcend political cycles, with the king personally overseeing projects to ensure continuity.

Bhutan Bitcoin Strategy Key Data

Revelation: Digital Samples of Small Countries Breaking Through

As developed countries debate endlessly over the approval of Bitcoin ETFs, farmers in Bhutan have been purchasing farming tools with Bitcoin, and tourists are paying hotel bills with ETH. This country, which once overturned the worship of GDP with its “happiness index,” is reconstructing economic sovereignty in a more radical way.

The core of the Bhutan model lies in the triple transformation:

• Resource Digitization

Convert 20,000 megawatts of hydropower potential into computing power advantage

• Reserve Diversification

Cryptocurrency ranks alongside gold and foreign exchange in national balance sheets.

• Pay Cross-Chain

Skip the credit card era and go straight to crypto payments (efficiency increased by 300%)

The evaluation by the International Monetary Fund is quite profound: “In areas where the fiat currency credit system is fragile, cryptocurrencies may become an economic stabilizer.” When Pakistan plans to follow Bhutan’s lead in launching a 2000 megawatt mining project, the Himalayan crypto lighthouse has already illuminated the escape route for more small countries.

In the monitoring room of the mine outside Thimphu, the technician stared at the fluctuating hash value curves on the screen. Outside the window flows a river formed by the melting glaciers, while inside are the Bitcoin block rewards generated by algorithms. Two natural forces converge here—one from the disparities created by tectonic movements, and the other stemming from humanity’s reconstruction of the credit system.

“The world will inevitably use Bitcoin, just like other currencies.” The prophecy of Bhutan’s Prime Minister Tshering, echoing amidst the roaring mining machines in the snow-capped mountains. For a resource-scarce small nation, this silent power revolution may be redefining the map of wealth in the 21st century.