Why Bhutan Is Mining Bitcoin in the Mountains While the World Watches

While most countries are still deciding whether to ban, tax, or regulate cryptocurrencies, Bhutan is doing something entirely different—mining them. Tucked in the Himalayan mountains, this peaceful kingdom is placing a bold bet on Bitcoin to counter rising unemployment, reverse its brain drain, and revitalize its shrinking economy.

And the results are turning heads.

Why Is Bhutan Mining Bitcoin?

In a country that measures progress by Gross National Happiness, embracing a high-risk digital asset might seem like a paradox. But Bhutan has a secret weapon—abundant hydropower. When summer rains raise river levels, Bhutan’s hydro plants generate more electricity than the nation can use or sell. Rather than let that energy go to waste—or sell it at low tariffs—Bhutan uses it to power energy-hungry supercomputers that mine Bitcoin.

Prime Minister Tshering Tobgay puts it simply: “It’s just a strategic choice…governments should do it.”

That strategy has already paid off. In 2023, Bhutan sold $100 million worth of Bitcoin to double civil servant salaries, curbing resignations in a workforce that had been rapidly thinning out.

From National Crisis to Crypto Lifeline

Let’s rewind a bit. Bhutan’s economy has been in crisis mode since COVID-19 decimated its tourism sector, once a vital source of income. The country, which caps tourist numbers to protect its environment, saw just 150,000 visitors last year—half of what it can comfortably accommodate.

With youth unemployment at 19% and over 10% of Bhutan’s skilled population migrating abroad in 2022 alone, the nation’s challenges became existential. Australia became a key destination, luring away thousands of young, educated Bhutanese.

But Bitcoin changed the equation.

Now, by redirecting surplus energy toward crypto mining, Bhutan is generating millions in digital income—and it’s not just Bitcoin. Reports show the country also holds Ethereum and LinqAI, though those make up a smaller portion of its portfolio.

As of April 2025, Bhutan’s crypto holdings total more than $600 million—roughly 30% of its GDP.

Is This Strategy Sustainable?

Skeptics point to the volatility of crypto markets, but Bhutan has an edge: eco-friendly infrastructure and cool climate conditions that reduce energy needs for mining. And thanks to its policy of maintaining at least 60% forest cover, it’s one of the few countries mining Bitcoin without compromising its environmental values.

Bhutan is also planning for the future with projects like the Gelephu Mindfulness City—a sustainable urban hub meant to balance economic growth with cultural preservation and ecological harmony.

The approach is measured, intentional, and deeply Bhutanese.

Conclusion: A Bold New Path in the Mountains

While global superpowers argue over-regulation and adoption, Bhutan is simply doing the work—quietly stacking Bitcoin and building resilience. It’s a gamble, sure. But for a nation where brain drain, economic fragility, and limited industrialization are urgent problems, this could be the lifeline that works.

And if it does? Bhutan won’t just be the world’s happiest country—it might just be its smartest.