Bhutan Outpaces El Salvador in Bitcoin Reserves, Holding Twice as Much

Cryptonews John Brightwater September 17, 2024

Bhutan Outpaces El Salvador in Bitcoin Reserves, Holding Twice as Much

Summary
Bhutan’s Druk Holdings holds over 13,000 BTC, more than double that of El Salvador’s 5,875 BTC. With substantial investments in mining operations powered by hydropower, Bhutan’s Bitcoin assets comprise approximately 25% of its projected GDP. This stark contrast highlights Bhutan’s strategic advantage in the cryptocurrency space compared to El Salvador.

Recent findings indicate that Bhutan possesses a much larger Bitcoin reserve than previously recognized, with its investment arm, Druk Holdings, reportedly holding over 13,000 BTC. This amount exceeds El Salvador’s reserves by more than 100%. According to Arkham Intelligence, a platform specializing in blockchain analytics, Bhutan’s Bitcoin holdings represent approximately $758 million. Druk Holdings has accumulated these assets predominantly through mining operations powered by the nation’s abundant hydroelectric resources. Further analysis reveals that in addition to Bitcoin, Druk Holdings also owns 656 ETH, valued at about $1.5 million, alongside minor quantities of BNB and Polygon tokens. Arkham corroborated the details of Bhutan’s Bitcoin mining activities by utilizing time-lapse satellite imagery of construction at the site of the now-defunct Education City project. With projections indicating Bhutan’s GDP may reach $3 billion by late 2024, the Bitcoin holdings represent a significant 25% of the country’s total economic output. Mining operations were initiated by Bhutan in April 2019, coinciding with Bitcoin trading around $5,000. Recently, in May 2023, the DHI collaborated with Bitdeer to enhance carbon-neutral mining capabilities within the country, and by April 2024, plans to expand the mining infrastructure by 500 megawatts to achieve a total capacity of 600 megawatts were revealed. Comparatively, El Salvador commenced its Bitcoin acquisition in September 2021, purchasing 5,875 BTC for approximately $331 million at significantly higher prices than those at which Bhutan initiated its holdings. This represents about 45% of Bhutan’s total Bitcoin assets. El Salvador’s strategy has generated a profit of approximately 32.6%, leveraging renewable geothermal volcanic energy for its mining efforts. It is noteworthy that although Bhutan has a population of roughly 790,000 residents, in stark contrast to El Salvador’s 6.3 million, its Bitcoin strategy is proving to be a pivotal component of its economic future.

The article delves into the comparative analysis of Bitcoin reserves held by Bhutan and El Salvador. Bhutan’s strategic accumulation of Bitcoin, largely through renewable energy-powered mining operations, positions it favorably on the cryptocurrency market compared to El Salvador. The context is set against Bhutan’s ongoing economic development and its commitment to sustainable energy practices, emphasizing the importance of Bitcoin as a financial asset relative to its GDP.

In summary, Bhutan’s substantial Bitcoin reserves, bolstered by its hydroelectric mining initiatives, underscore its significant position in the cryptocurrency domain. As Bhutan continues to expand its mining capacity and investments, its economic stability appears strengthened. In contrast, while El Salvador has made notable investments in Bitcoin, Bhutan’s pioneering approach to sustainable mining may yield greater long-term benefits for its economy.

Original Source: cryptotvplus.com