Bitcoin and Mining: How Bhutan is Relaunching its Economy

Bhutan has turned to cryptocurrencies to stimulate its economy, mining bitcoins worth millions of dollars in recent years. The mountainous country has faced a 'brain drain', high unemployment and a decline in tourism. But by selling the mined bitcoins, Bhutan has managed to increase the salaries of civil servants, thus reducing the number of professionals emigrating.

Cryptocurrency mining in Bhutan is powered by hydropower. During the summer months, water flows with greater intensity, causing hydropower plants to generate more energy than necessary. "That's why bitcoin mining makes perfect sense," Bhutan's Prime Minister Tshering Tobgay told Al Jazeera.

"It's simply a strategic choice that many people have made earning billions of dollars, and I think governments should do it too," Tobgay added.

The Kingdom of Bhutan lies between India and China, with an area of just over 38,000 square kilometres, but much of this territory is unsuitable for agriculture due to its mountainous terrain. The country, with a population of about 800,000, imports most of its food from India.

Bhutan is facing economic difficulties in the wake of the COVID-19 pandemic. Tobgay says the nation can accommodate about 300,000 visitors a year, with 150,000 expected in 2024 alone. However, one of the most serious effects has been the emigration of young people and skilled professionals to other countries, as local salaries are not competitive with those in richer nations.

This 'brain drain' has resulted in a decrease in civil servants in Bhutan. In 2023, the government sold $100 million worth of cryptocurrencies to double the salaries of civil servants, thus reducing the exodus of professionals.

Bitcoin Mining in Bhutan: A Sustainable Pathway for Economic Growth and Culture Protection

Bitcoin mining is one of the few economic activities that allows Bhutan to develop economically without giving up its national values. Foreign investment in the country is limited by the fact that Bhutan protects the environment and does not allow industries that could harm it.

"We have been very careful about foreign direct investment. We have ruled out companies that harm the environment, contaminate the air or threaten our culture," said Tobgay.

Bhutan produces more hydropower than it consumes. The surplus is exported to India. However, bitcoin mining has emerged as an alternative to exporting: where tariffs are high, Bhutan sells electricity to India; where tariffs are low, it uses the electricity to mine bitcoin.

The kingdom's cryptocurrencies are held in the wallet of the state-owned mining company Druk Holding & Investments. According to analytics platform Arkham, as of April 2025, Bhutan holds 7,697 bitcoins (approximately $659 million at current exchange rates). This is equivalent to about 22 per cent of the state's GDP, which was $3.02 trillion in 2024.

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