Bhutan, a country traditionally recognised for prioritising Gross National Happiness and environmental sustainability, is now boldly moving into financial innovation by investing significantly in Bitcoin, the leading cryptocurrency. Tucked between India and China in the Himalayas, Bhutan has quietly generated millions of dollars in Bitcoin over the past few years by using its excess hydropower to operate high-powered, energy-hungry computers. It is one of the rare nations in the world to invest in digital assets nationally.

In a March interview, Bhutanese Prime Minister Tshering Tobgay said, “It’s just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it.”

Bhutan, the world’s first carbon-negative country, uses its surplus hydropower during the summer to mine Bitcoin. This involves powerful computers solving complex problems to earn digital currency, as reported by Al Jazeera.

The decision comes as Bhutan faces growing economic difficulties, such as a decline in tourism and an increasing brain drain. With a GDP of $3.52 billion and a youth unemployment rate of 19% in 2024, the country is turning to Bitcoin to help ease its financial troubles.

Tourism, once a major source of income, suffered greatly due to the COVID-19 pandemic. Bhutan enforces strict tourist limits to protect its environment, charging international visitors $100 per day in sustainability fees and $15 for Indian tourists. Although the country can host up to 300,000 tourists annually, only 150,000 visited in 2024. At the same time, many educated Bhutanese have left the country for better-paying jobs abroad. In 2022, over 10% of the skilled workforce had emigrated. This brain drain has affected sectors like civil services, which saw nearly 1,900 resignations in early 2023. However, that number dropped to 500 in 2024 after the government used $100 million earned through Bitcoin to double civil servant salaries.

Although Bhutan hasn’t officially revealed how much cryptocurrency it owns, blockchain analytics firm Arkham estimates that, as of April 9, the country holds more than $600 million worth of Bitcoin, roughly 30% of its GDP. The data also points to smaller investments in other digital assets like Ethereum and LinqAI. Analysts say Bhutan’s interest in Bitcoin aligns with its focus on sustainability. The country’s naturally cool climate helps reduce the need for cooling mining equipment, and its plentiful hydropower offers a clean energy source.

Ujwal Deep Dahal, CEO of Druk Holding and Investments, the investment branch of Bhutan’s government, stated that “it is important for Bhutan to capitalise on the green energy we have in terms of mining Bitcoin as a part of our investment portfolio.” Bhutan’s traditionally cautious stance on foreign investment and industrial growth has limited its economic choices. However, Bitcoin mining presents a unique opportunity to expand the economy while honouring the country’s environmental principles.

Back in 2019, King Jigme Khesar Namgyel Wangchuck remarked, “Being a small nation makes us a smart nation— this is not out of choice but out of necessity,” emphasising that “technology is an indispensable tool that will be necessary to realise this aspiration.”