Bhutan Holds More Bitcoin than El Salvador, According to Arkham Intelligence
Summary
Bhutan outstrips El Salvador in Bitcoin holdings, possessing 13,029 BTC valued at approximately $758 million compared to El Salvador’s 5,875 BTC worth $331 million. Bhutan’s holdings originate from hydroelectric-powered Bitcoin mining operations managed by Druk Holdings International. The nation’s mining capabilities are expected to expand significantly by 2025, further solidifying its position in the Bitcoin market. El Salvador, however, has experienced profitable acquisitions despite commencing its Bitcoin strategy later and at a higher price.
Bhutan has emerged as a substantial holder of Bitcoin, reportedly possessing approximately 13,029 BTC, equivalent to around $758 million, which surpasses the holdings of El Salvador. According to Arkham Intelligence, the onchain analytics platform, these holdings are attributed to Bitcoin mining operations undertaken by the Kingdom of Bhutan’s investment arm, Druk Holdings International (DHI). Furthermore, the data indicates that Druk Holdings also possesses 656 ETH, valued at approximately $1.5 million, in addition to a modest amount of BNB. Arkham’s analysis corroborated the timeline of Bhutan’s mining activities through time-lapse satellite imagery of the construction of the now-abandoned Education City project. Notably, Bhutan’s gross domestic product (GDP) is projected to reach $3 billion by the conclusion of 2024. The inception of Bitcoin mining utilizing hydroelectric power in Bhutan dates back to April 2019, coinciding with a Bitcoin price of roughly $5,000. In collaboration with Bitdeer in May 2023, DHI initiated plans for carbon-neutral mining operations within Bhutan. Anticipation surrounds the upgrades to be unveiled in April 2024, which are set to elevate Bhutan’s mining capacity by 500 megawatts, achieving a total capacity of 600 MW by the first half of 2025. In contrast, El Salvador commenced its Bitcoin acquisitions in September 2021, when Bitcoin prices were approximately $51,700. According to data from the Nayib Tracker, El Salvador currently holds 5,875 BTC, valued at $331 million, which accounts for nearly 45% of Bhutan’s holdings. Additionally, El Salvador’s Bitcoin acquisitions, achieved at an average price of $43,900, yield a profit of 32.6% for the Central American nation. El Salvador similarly employs renewable geothermal energy for its Bitcoin mining. Despite attempts for further commentary, Cointelegraph did not receive an immediate response from the DHI.
The burgeoning interest in cryptocurrency among nations is evidenced by Bhutan’s substantial Bitcoin holdings, which now exceed those of El Salvador. This financial maneuvering is supported by Bhutan’s utilization of hydroelectric power for its mining operations, conducted under Druk Holdings International, which seeks to innovate and expand its capacity in a sustainable manner. By contrast, El Salvador’s engagement with Bitcoin began during a period of higher cryptocurrency valuations, marking a different strategic approach in Bitcoin investments.
In conclusion, Bhutan’s significant Bitcoin holdings highlight its leading position in cryptocurrency investments, enhanced by hydroelectric-powered mining activities. This contrasts with El Salvador’s Bitcoin strategy, which commenced under more expensive conditions yet retains profitability through strategic acquisitions. Both nations demonstrate a commitment to renewable energy in their mining efforts, underscoring a trend toward sustainability in the cryptocurrency sector.
Original Source: cointelegraph.com
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