Bhutan has transformed its abundant hydropower into a billion-dollar Bitcoin mining operation. Starting in 2019, the country redirected surplus renewable energy, previously sold at low rates, into mining cryptocurrency. This shift has generated over 13,000 Bitcoin, with 11,400 Bitcoin valued at $1.4 billion, contributing nearly 40% of Bhutan's GDP by 2025. The profits have funded public wages, doubled civil servant salaries, and reduced reliance on tourism and agriculture.
Key highlights:
- Bhutan mines Bitcoin using 100% hydropower, ensuring zero emissions.
- The government strategically sells Bitcoin during price surges, earning over $200 million in the past year.
- Mining operations have created jobs, trained workers in blockchain technology, and addressed youth unemployment.
- Bhutan plans to expand its hydropower capacity from 3.5 GW to 15 GW in the next decade, with long-term goals of reaching 33 GW.
This approach shows how surplus energy can be converted into high-value assets, offering a steady income stream while maintaining environmental responsibility.
Bhutan's Secret Bitcoin Mine: Harnessing Hydro Power for Crypto
Using Hydropower for Bitcoin Mining
Bhutan's success in Bitcoin mining is closely tied to its rich hydropower resources. With its mountainous terrain and fast-flowing rivers, the country generates renewable electricity throughout the year, powering its cryptocurrency operations entirely with clean energy.
Bhutan's Hydropower Capacity and Surplus Energy
Bhutan boasts a reported hydropower capacity of 3.5 gigawatts. This capacity allows the nation to channel excess energy into Bitcoin mining. Experts predict that Bhutan could eventually scale its capacity to 33 gigawatts, with plans to reach 15 gigawatts within the next 10 to 15 years. During the monsoon season, when river flows are at their peak, Bhutan produces far more electricity than its 770,000 residents need. Instead of selling this surplus energy at low prices to neighboring India, the government has opted to redirect it toward Bitcoin mining facilities.
The state-owned investment company, Druk Holdings and Investments, oversees this energy allocation across six mining facilities. By using surplus hydropower during high water levels, these operations efficiently convert unused electricity into Bitcoin. This strategy transforms what would otherwise be wasted energy into a valuable economic resource.
Clean Energy Advantages in Mining
Hydropower mining in Bhutan is entirely emissions-free. The country's dedication to renewable energy has allowed it to remain carbon-negative, with its forests absorbing more CO₂ than the nation emits. This makes the Bitcoin mined in Bhutan genuinely carbon-neutral.
"You're only four steps away from mining Bitcoin using 100% carbon-free energy!" - Sazmining
This clean energy approach is particularly appealing to international companies focused on meeting Environmental, Social, and Governance (ESG) goals. As these organizations increasingly seek greener digital assets, Bhutan's model stands out as an example to follow. Additionally, while traditional mining operations in countries like the United States face electricity costs averaging $0.17 per kWh - making profitability a challenge - Bhutan benefits from low-cost hydropower.
"Moreover, they exclusively use cheap, renewable energy." - Bryce McDowell, Sazmining Customer
For those interested in sustainable mining, services like Sazmining illustrate how long-term, fixed-rate contracts for renewable energy can ensure both profitability and environmental responsibility. Bhutan's approach shows that Bitcoin mining can create economic value without harming the planet. This sustainable model also opens the door to diverse income opportunities, which will be explored further in the next section.
Economic Impact: New Income Sources and Growth
Bitcoin mining has opened up new, multi-million-dollar revenue streams for Bhutan, providing the country with significant financial gains beyond its traditional economic sectors. These earnings play a key role in supporting government strategies and driving broader economic reforms.
Building Government Bitcoin Reserves
Bhutan has established itself as a leader in government-held Bitcoin reserves, thanks to its mining strategy. Starting in 2019, when Bitcoin was priced around $5,000, the government has mined over 13,000 Bitcoin. This early adoption of cryptocurrency has paid off immensely, with state-owned Druk Holdings and Investments strategically selling Bitcoin during price surges to fund essential government operations. For instance, these profits have been used to cover two years of public wages.
In July 2025, Bhutan sold 512.84 Bitcoin over four days, generating $59.47 million as Bitcoin prices rose from $108,000 to over $122,000. Over the past year, the government has sold about 2,262 Bitcoin through six major transactions, earning over $200 million at an average price of $88,612 per Bitcoin.
Prime Minister Tshering Tobgay highlighted this approach during a March 2025 interview with Al Jazeera:
"It's just a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it."
Moving Beyond Tourism and Agriculture
Bitcoin mining is reshaping Bhutan's economy, offering stability that traditional sectors like tourism and agriculture cannot guarantee. Tourism, for example, was heavily impacted during the pandemic, and agriculture remains vulnerable to weather conditions. In contrast, Bitcoin mining provides consistent revenue regardless of external challenges. As the CEO of Druk Holdings and Investments explained, "Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency".
This shift is particularly important as Bhutan faces declining tourism earnings. Instead of selling surplus hydropower at low prices to neighboring countries, the government now channels this energy into Bitcoin mining facilities. These operations generate between 55 and 75 BTC weekly, translating into millions of dollars in revenue.
Creating Jobs and Technical Skills
The expansion of Bitcoin mining has also created new jobs in Bhutan's tech industry. Druk Holdings and Investments currently operates six mining facilities, with a seventh under construction. These facilities require skilled workers, including technicians and engineers, offering much-needed employment opportunities. This is especially critical as government data shows that over 10% of young people left Bhutan between 2022 and 2023, with youth unemployment rising to 16.5% in 2024.
Additionally, the mining operations provide training in blockchain and digital systems, equipping young Bhutanese with valuable skills. This aligns with Bhutan's ambitious plans to expand its hydropower capacity from 3.5 gigawatts to 15 gigawatts over the next 10 to 15 years. By developing expertise in blockchain technology and artificial intelligence, the country is addressing brain drain while integrating renewable energy with cutting-edge tech. The sovereign wealth fund views cryptocurrency assets as both a strategic investment and a potential game-changer for Bhutan's economic future.
Through these efforts, Bitcoin mining is not only boosting the economy but also creating pathways for Bhutan's youth to build promising careers at home, reducing the need to seek opportunities abroad.
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Social and Government Policy Results
Bhutan’s Bitcoin mining operations offer a fascinating glimpse into how the country aligns its technological pursuits with its deep-rooted social and environmental principles. It’s a model that demonstrates how economic growth can coexist with tradition and a commitment to sustainability.
Supporting Gross National Happiness Goals
Bhutan doesn’t measure success solely through GDP. Instead, it uses its unique Gross National Happiness (GNH) index, which takes into account factors like emotional well-being, recreation, and environmental stewardship. In this context, Bitcoin mining fits seamlessly into Bhutan’s vision. By relying entirely on renewable hydropower, the mining process not only supports economic growth but also contributes to a greener digital economy by reducing the reliance on fossil-fuel-based cryptocurrency production.
The impact goes beyond the environment. Mining profits have been used to fund two years of public wages. This has been particularly significant as the pandemic revealed vulnerabilities in traditional revenue sources like tourism, agriculture, and hydropower sales. Bitcoin mining has emerged as a more stable and resilient alternative. Additionally, the industry has spurred the creation of high-tech jobs in blockchain and AI, providing opportunities for Bhutanese youth and addressing challenges like rural-to-urban migration. This balance between economic and social priorities highlights Bhutan’s ability to craft policies that are both innovative and inclusive.
Government Support and Regulations
Bhutan’s government has played a key role in ensuring that Bitcoin mining aligns with its broader goals. By implementing strict regulations and offering tax incentives, the government has created a framework that encourages investment while mandating sustainable practices.
Druk Holding and Investments Ltd (DHI), the commercial arm of the Royal Government, began its cryptocurrency journey in 2019 as part of a diversified investment strategy. Between July 2021 and June 2023, nearly $500 million was invested to convert unused infrastructure into crypto mining facilities. This governmental oversight ensures that mining operations meet stringent environmental standards and that the economic benefits are distributed equitably.
Bhutan is also positioning its “green” Bitcoin to meet international ESG benchmarks. DHI CEO Ujjwal Deep Dahal has emphasized the importance of reinvesting mining profits into human capital. By training young people in blockchain and AI, Bhutan aims to create jobs and retain talent within the country. These efforts have placed Bhutan among the top three government holders of Bitcoin globally, showcasing its commitment to integrating technological progress with sustainable and equitable development.
What Other Countries Can Learn from Bhutan
Bhutan's success in harnessing hydropower for Bitcoin mining offers a practical example for nations looking to utilize renewable energy resources more effectively.
How Other Countries Can Follow Bhutan's Lead
Countries with surplus renewable energy could replicate Bhutan's strategy by channeling unused electricity into Bitcoin mining. This method transforms excess energy into digital assets, creating additional revenue streams while providing flexibility to national grids during periods of low domestic power demand.
Key components of this approach include utilizing surplus renewable energy, establishing government-led or regulated mining operations, and reinvesting mining profits into national development. For example, El Salvador has leveraged geothermal energy for Bitcoin mining on a smaller scale. Similarly, Russia has explored hydro and nuclear-powered mining, though regulatory hurdles have slowed progress.
To adopt a similar model, nations should evaluate their renewable energy surplus, implement clear regulations, create public-private mining partnerships, and strategically reinvest the profits. Bhutan’s ambitious plan to expand its hydropower capacity from 3.5 gigawatts to 15 gigawatts over the next 10–15 years highlights the importance of forward-thinking energy strategies.
The economic benefits of this approach are compelling. Bhutan has generated millions of dollars weekly by converting surplus energy into Bitcoin for its population of 800,000. At times, the profits have even been sufficient to cover public sector wages for two years. This model demonstrates how a combination of government-led initiatives and private sector involvement can unlock significant economic opportunities.
Managed Mining Services for Broader Participation
Building on government-led models, private managed mining services can expand access and participation in clean energy mining. These services handle the complexities of mining - such as rig shipping, maintenance, and performance optimization - while providing direct Bitcoin payouts.
This inclusive approach aligns with Bhutan’s goals of sustainability and economic inclusion, while also creating jobs and fostering skill development. For individuals and businesses, managed services offer a way to host mining rigs in environmentally friendly data centers. Companies like Sazmining, for instance, take care of everything from logistics to ongoing rig maintenance, ensuring transparency and ease of use.
For countries looking to develop renewable energy mining strategies, partnerships with managed service providers can simplify the process. These providers bring expertise in areas like site evaluation, equipment selection, and regulatory compliance. Additionally, securing long-term fixed-rate electricity contracts and adopting diversified financial strategies can help mitigate market volatility and ensure stable operating costs.
Conclusion: Bhutan's Model for Clean Mining
Bhutan has carved out a unique path by blending clean energy and Bitcoin mining, reshaping how economic growth can coexist with environmental care. By channeling surplus hydropower into Bitcoin mining, the country has turned an abundant natural resource into a digital asset, amassing over $1.4 billion in Bitcoin and creating substantial economic value.
Over the past few years, Bhutan has mined more than 12,000 Bitcoin using entirely renewable hydropower, generating consistent revenue for its population of around 800,000. Prime Minister Tshering Tobgay described this approach as a "simple strategic choice", one that has funneled billions into the nation's economy.
"Every coin mined in Bhutan offsets one that would otherwise be mined using fossil fuels."
- Ujjwal Deep Dahal, CEO of Druk Holding and Investments
In addition to its government-led initiatives, managed Bitcoin mining services provide an opportunity for individuals and businesses to contribute to this clean energy model without needing the expertise to build and operate their own systems. Platforms like Sazmining, which operate eco-friendly data centers powered by renewable energy, showcase how others can replicate Bhutan’s success in utilizing hydropower for economic and environmental benefits.
What stands out about Bhutan’s approach is its scalability. Plans to expand hydropower capacity from 3.5 GW to 33 GW promise even greater mining revenues in the future. The country’s ability to balance short-term gains with long-term reserves is evident in moves like the $59 million Bitcoin sale in July 2025, which underscores the financial potential of this model.
Bhutan’s strategy demonstrates that renewable-powered Bitcoin mining can fuel economic progress while safeguarding the environment. It offers a template for others aiming to align sustainable practices with economic ambitions, proving that clean energy can power not just homes but also transformative industries.
FAQs
How does Bhutan's hydropower support its carbon-negative Bitcoin mining efforts?
Bhutan is tapping into its rich hydropower resources to drive Bitcoin mining in an environmentally conscious manner. By harnessing renewable energy from its rivers, the country keeps its mining operations eco-friendly, staying true to its pledge of maintaining a carbon-negative footprint.
This strategy goes beyond just energy efficiency. It provides a smart way to use surplus power while opening doors to the expanding cryptocurrency market. Bhutan’s hydropower-backed mining showcases how renewable energy can fuel forward-thinking economic ventures without straying from environmental priorities.
How has Bhutan benefited economically from its hydropower-driven Bitcoin mining, and what effects has it had on key industries like tourism and agriculture?
Bhutan has tapped into its rich hydropower reserves to venture into Bitcoin mining, transforming excess energy into a lucrative opportunity. This strategic move has broadened the country's economic landscape, easing its dependence on more conventional sectors like tourism and agriculture while opening up fresh revenue channels.
The profits from Bitcoin mining could play a key role in funding infrastructure projects and creating employment opportunities, which, in turn, may indirectly boost sectors like tourism and agriculture. By harnessing clean, renewable energy for this purpose, Bhutan has also carved out a role as a trailblazer in adopting eco-friendly technologies - an approach that aligns seamlessly with its overarching goals of economic growth and environmental responsibility.
How is Bhutan planning to expand its hydropower capacity, and what impact could this have on its Bitcoin mining operations and economy?
Bhutan has tapped into its rich hydropower resources to not only manage energy surpluses but also to diversify its economy through Bitcoin mining. While plans to expand its hydropower capacity haven't been explicitly outlined, increasing this renewable energy source could strengthen Bhutan's ability to support sustainable Bitcoin mining while contributing to economic development.
By focusing on clean energy options like hydropower, Bhutan sets an example of how renewable energy can be integrated into cutting-edge industries. For those interested in environmentally conscious Bitcoin mining, companies like Sazmining provide managed solutions that emphasize both transparency and eco-friendly practices.