Bhutan is leveraging its abundant hydropower to mine Bitcoin on an industrial scale, aiming to convert surplus renewable electricity into digital assets and hard-currency liquidity. Hydropower, which dominates Bhutan’s energy exports, is central to this strategy, with policies targeting major capacity growth—an estimated 33,000 MW potential. Bhutan’s state-owned Druk Holding and Investments (DHI) leads the crypto initiative, viewing Bitcoin mining as a means to monetize surplus power and help fund government expenses. The country has partnered with Bitdeer to launch a $500 million fund for carbon-free mining operations. Bhutan uses Bitcoin strategically—as a financial buffer or “battery”—by mining during periods of excess electricity and potentially converting crypto holdings in leaner seasons. The government regulates mining through a controlled framework centered on Gelephu Mindfulness City (GMC), allowing only registered entities to participate. Recent government-linked Bitcoin mining reportedly generated $750 million. Bhutan emphasizes the green credentials of its Bitcoin, yet challenges remain around transparency, hydropower scalability, and disciplined reserve management. The success of this model will depend on sustained energy expansion and effective policy execution.

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