Bhutan has expanded its government-led crypto strategy to combine hydropower, Bitcoin mining and Gelehuhu Mindfulness City into one national plan. The program directs surplus renewable electricity into Bitcoin (BTC) reserves, while Gelephu sets regulations for cryptocurrency financing, custody, and licensing of compliant digital asset services.
Hydropower surplus supports Bitcoin mining output
Hydropower supplies electricity to Bhutan’s electricity grid. Himalayan rivers supply water to dams, which generate low-cost electricity. Domestic demand remains low, so Bhutan has been selling surplus electricity to India for decades. Export revenues supported the public budget, but prices fluctuated depending on season and contract. Mining Bitcoin adds new buyers, and mining buys electricity in real time.
Bitcoin mining converts electricity into BTC through specialized machines. Operators run hashing hardware within their data centers and compete for rewards in Bitcoin blocks. When power generation increases, operators can add mining loads, and when supply is tight, operators can reduce mining loads.
This flexibility is important for hydropower systems. Water levels may increase after rain, but demand changes slowly. As a result, Bitcoin mining can absorb overflow generation without building heavy industry.
Bhutan is also relying on a clean energy narrative when it comes to cryptocurrency mining. Hydropower generation minimizes direct emissions during power generation. Therefore, Bhutan can frame Bitcoin mining as renewable energy production rather than fossil fuel production of cryptocurrencies.
Seasonality still drives mining decisions. In winter, river flows can decrease, reducing production. During dry periods, planners need to reduce Bitcoin mining loads or import electricity for essential needs.
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Grid dispatch keeps Bitcoin mining flexible
Grid teams can treat Bitcoin mining sites as an interruptible load. The agreement allows homes, hospitals and essential services to be prioritized. During peak generation times, operators can send reserve power to mining data centers. When supply is tight, operators can reduce Bitcoin mining within minutes.
This setup also protects the export of hydropower. As India’s demand increases, Bhutan can divert power to cross-border transmission lines and reduce its crypto mining intake. Additionally, Bitcoin mining can provide a price floor when export demand is weak. As a result, energy planners have new avenues for revenue smoothing.
DHI turns electricity into Bitcoin reserves
Druk Holding and Investments (DHI) coordinates cryptocurrency activities in Bhutan. DHI manages the state’s interests across energy, finance, and infrastructure. This mission targets long-term national wealth and economic resilience.
According to public accounts, Bitcoin mining in Bhutan is expected to begin around 2019. Early management remained silent, and public discussion remained limited. Subsequent legal disclosures linked DHI to a cryptocurrency lending platform and confirmed active digital asset management.
According to blockchain analytics platform Arcam Intelligence, Bhutan holds nearly 6,000 BTC worth about $550 million. The country’s Bitcoin reserves peaked in 2025 at more than 13,000 BTC, but holdings dwindled during a heavy sell-off in the second half of the year.
The story of Bhutan’s crypto reserves is different from government holdings based on seizures. Many governments hold BTC that has been seized in criminal cases. Bhutan has built up Bitcoin reserves through domestic Bitcoin mining and long-term holding periods.
DHI treats Bitcoin as a reserve asset rather than an everyday payment tool. A long-term perspective suits DHI’s investment style. Moreover, centralized governance fits Bhutan’s preference for a controlled national strategy.
Partnership expands green Bitcoin mining without losing oversight
Bhutan leverages partnerships to expand Bitcoin mining operations. In 2023, DHI partnered with Bitdeer to expand hydropower-based crypto mining capacity, aiming to combine Bhutan’s energy advantages with global Bitcoin mining expertise.
Bitdeer provided procurement channels, ASIC implementation experience, and operational know-how, while DHI provided power access, site coordination, and strategic direction. As a result, Bhutan was able to expand its BTC mining capacity more quickly while keeping public oversight front and center.
Gelefu Mindfulness City sets rules for crypto finance
Bitcoin mining forms one pillar, and crypto finance forms the second. Gelephu Mindfulness City (GMC) underpins Bhutan’s plans for regulated digital asset services. The King declared the GMC as a special administrative region in southern Bhutan.
The GMC aims to diversify its economy and retain its talent. The city plan describes a sustainability-driven design with green transportation and careful zoning. At the same time, planners are positioning fintech, crypto regulation, and digital finance near the center.
Special regions allow you to create clear cryptographic rulebooks. Regulators can license digital asset companies, enforce compliance, and monitor custody standards. Businesses can offer services such as cryptocurrency storage, structured products, and regulated trading based on defined requirements.
Gelephu’s location near the Indian border allows businesses to tap into the South Asian market. Meanwhile, Bhutan can test cryptocurrency regulation within the GMC without changing the national system overnight.
Bitcoin reserves support crypto-backed city financing
Bhutan has tied its Bitcoin reserves to GMC development. The King announced a commitment of up to 10,000 BTC as long-term support. Officials do not view this pledge as a plan to quickly sell Bitcoin.
Instead, officials discussed raising funds backed by Bitcoin. Borrowing against BTC can increase liquidity for roads, utilities, and public services. However, risk teams should be prepared for a sharp decline in BTC price and collateral pressure.
Bitcoin-backed funding allows us to reduce our dependence on tourism revenue. It can also supplement hydropower export revenues. Nevertheless, BTC’s volatility can make borrowing conditions stricter during economic downturns, making buffers and limits important.
Bhutan has avoided Bitcoin fiat campaigns. There are no rules requiring merchants to accept Bitcoin for daily payments. The policy team has focused on sovereign BTC reserves, infrastructure and regulated crypto services within the GMC.
Storage, sales discipline, crypto risk management
Sovereign Bitcoin stockpiles create operational needs. Finance teams must store private keys securely and carefully control access. Many institutions use cold storage and multi-signature authorization for their high-value BTC wallets.
Governance also requires clear rules regarding BTC sales. A selective sales schedule can support your budget, but rushing a sale can lock in losses. Stress testing allows you to model BTC drawdowns and collateral calls. Additionally, internal limits may limit leverage and establish liquidity buffers.
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Skills, Suppliers and Crypto Industry Achievements
Bitcoin mining can create technical jobs that go beyond basic operations. Electricians, network engineers, and security staff can support mining facilities and grid connections. Vendor work can also extend to cooling systems, fiber installation, maintenance parts, and more.
GMC can extend job creation to fintech and compliance. A licensed cryptocurrency company must have a risk officer, legal team, and customer support. Training programs can connect schools and employers. As a result, Bhutan can combine crypto growth with workforce retention.
How Bhutan’s cryptographic model works in practice
Bhutan’s model starts with the management of hydropower. During wet months, surplus generation occurs, making low-cost electricity available. Bitcoin mining then converts the surplus electricity into BTC under public supervision.
DHI then holds the Bitcoin for the entire market cycle. Selective sales can support financial needs, while long-term holding periods can preserve accumulated value. Finally, the GMC aims to attract licensed crypto finance companies and investment flows.
Each pillar connects to the next pillar. Hydropower provides cost advantages and Bitcoin mining increases reserves. And BTC reserves and cryptocurrency regulations support GMC’s investment plans.
The constraints remain clear. Hydropower generation varies seasonally, and mining margins vary depending on network difficulty. BTC prices can fluctuate rapidly, so reserve management requires strict limits and clear risk controls.
Bhutan has created an unusual combination of energy policy and sovereign crypto reserves. This strategy keeps decisions within the public sector and maintains long planning cycles. As a result, Bhutan has created a government-led crypto model rooted in renewable electricity, Bitcoin mining, and managed crypto financial rules.
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