Bhutan Pledges $1 Billion in Bitcoin to Build ‘Mind City’ Without Selling Reserves
Crypto journalist
Anas Hasan
Crypto journalist
Anas Hasan
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Bhutan announced a national Bitcoin development pledge on Tuesday, spending up to 10,000 BTC worth an estimated $1 billion to fund the construction of Glephu Mindfulness City without destroying its sovereign digital asset reserves.
During his National Day speech, King Jigme Kesar Namgyel Wangchuck announced a commitment to youth employment and national prosperity as a generational investment linked to a new economic hub in southern Bhutan.
The commitment channels include Bitcoin GMC's development through collateralized lending, risk-managed product strategies and long-term approaches designed to preserve capital while financing infrastructure.
This growth was made possible by a multi-year commitment to leverage Bitcoin's compound value over time rather than converting reserves into cash.
Officials said the final implementation details are expected in the coming months, with regulatory frameworks emphasizing capital protection, due diligence and transparency.
Sovereign Minerals and Clean Energy Foundation
By 2021, Bhutan has become the world's fifth-largest state holder of Bitcoin, having mined 13,011 BTC using surplus power from Himalayan rivers.
The renewable energy-powered mining operation converts excess national grid capacity into digital assets without additional environmental impact, crypto holdings now exceed 11,286 BTC, worth $1.28 billion, according to Bitbo data.
The kingdom's hydroelectric resources sometimes exceed domestic demand, allowing clean energy to become a long-term national asset through national power generation services.
This mining strategy accounts for more than 25% of Bhutan's GDP and combines economic growth with ecological stewardship while maintaining a commitment to environmental sustainability that is central to the country's development philosophy.
Kingdom established Green Digital Limited through GMC to develop blockchain infrastructure and recently partnered with Cumberland DRW on digital asset trading frameworks, sustainable mining expansion, AI compute facilities and national stablecoin development.
Green Digital Chairman Gelai Jamsho said the partnership will support the country's diversification agenda beyond traditional economic sectors by linking Bhutan's renewable energy infrastructure with institutional liquidity.
Blockchain integration in national systems
Beyond mining, Bhutan has deployed blockchain-based national identity systems that serve 800,000 citizens on Ethereum after emigration from Polygon, a transition completed in October, enabling verifiable credentials and digital signature capabilities.
Prime Minister Tshering Tobgai said using Ethereum's globally distributed network will strengthen the security, transparency and robustness of the digital infrastructure, serving almost the entire population.
In May, the Kingdom partnered with DK Bank and Binance Pay to enable crypto payments for tourism merchants, allowing visitors to use more than 100 currencies for everything from airline tickets and hotel stays to roadside fruit stands.
More than 100 local businesses now accept digital assets, Tourism Director Damcho Rinzin said, adding that the system's innovation and inclusion is supporting the Sustainable Development Goals.
Most recently, Bhutan launched TER, a Solana-based token backed by physical gold reserves distributed through DK Bank, placing the country among the few to experiment with government-backed token assets.
The intelligent city as an economic catalyst
Gelephu Mindfulness City operates as a special administrative region designed to attract international capital through regulatory transparency and modern financial connectivity while preserving cultural values.
King Jigme Kesar Namgyel Wangchuck designed the GMC as a joint national organization with citizens acting as stakeholders to implement new land policies that ensure Bhutanese from all regions benefit from development revenues, as most of Asir is state-owned.
“As your king, I must ensure that all Bhutanese are custodians, stakeholders and beneficiaries of GMC,” the king said. “Think of GMC as a company and landowners as shareholders.”
Market Outlook supports strategic ownership
Bitcoin traded at $87,274 today, up 1.9% in Asian hours, as the currency's reserves hit record highs and traders awaited U.S. inflation data.
As institutional capital enters platforms such as Morgan Stanley and Wells Fargo, major asset managers including Bitwise and Grayscale project that Bitcoin will exceed its previous all-time high by 2026, despite traditional cycle theory predicting corrections, institutional capital such as Morgan Stanley and Wells Fargo will accelerate adoption.
Bhutan's pledge is in line with the growing adoption of sovereign and corporate digital assets, as global crypto ETPs have attracted $87 billion in net revenue since the launch of US products in January 2024.
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