Bitcoin Magazine

Bhutan Pledges Up to 10,000 Bitcoin to Build New Mega-City

Bhutan has committed up to 10,000 bitcoin to support the long-term development of Gelephu Mindfulness City (GMC), marking one of the most ambitious sovereign uses of bitcoin for national infrastructure and economic development to date.

The Himalayan kingdom unveiled the Bitcoin Development Pledge this week, allocating a portion of its sovereign bitcoin holdings — valued at roughly $860 million to $1 billion at current prices — to back the new special administrative region in southern Bhutan. 

Officials emphasized that the allocation is intended to preserve capital over the long term rather than fund near-term spending through asset sales.

Instead, Bhutan is exploring mechanisms such as collateralized lending, treasury and yield strategies, and intentional long-term holding to finance infrastructure and development while maintaining exposure to bitcoin’s potential appreciation. 

Final decisions on how the assets will be deployed are expected in the coming months, according to the government.

Gelephu Mindfulness City is central to Bhutan’s broader effort to diversify its economy beyond hydropower and tourism, while remaining aligned with the country’s development philosophy centered on sustainability and social well-being. 

The project, launched in 2024, is designed as a future economic hub focused on finance, technology, green energy, healthcare, agriculture, and high-value tourism.

The city spans roughly 1,544 square miles — about 10% of Bhutan’s territory — near the Indian border.

Bitcoin as a commitment to Bhutan’s youth

King Jigme Khesar Namgyel Wangchuck announced the bitcoin commitment during his National Day Address, framing it as a generational investment aimed at creating quality jobs and opportunities for Bhutan’s youth.

“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,” he said. “This commitment is for our people, our youth, and our nation.”

A new land policy associated with the project will treat landowners as shareholders in the city’s development, ensuring citizens across all regions share in the economic upside. Since much of the land involved is state-owned, the government says the benefits will be broadly distributed nationwide.

Bhutan’s bitcoin holdings stem from years of state-backed mining operations powered by surplus hydroelectric energy. Beginning around 2019–2020, the country quietly converted excess renewable power into digital assets, positioning itself as one of the earliest sovereign bitcoin miners. Officials say the strategy allows Bhutan to monetize unused energy capacity without increasing environmental impact.

Estimates of Bhutan’s total bitcoin reserves vary by analytics provider, ranging from roughly 6,000 to more than 11,000 BTC, placing the kingdom among the world’s largest sovereign bitcoin holders. 

The bitcoin pledge builds on a broader national blockchain strategy already underway. Bhutan has rolled out crypto-enabled payments across its tourism sector through partnerships with DK Bank and Binance Pay, allowing visitors to pay with more than 100 digital assets at hotels, airlines, and local merchants. More than 100 tourism-related businesses now accept crypto payments.

The country has also introduced TER, a sovereign-backed digital token reportedly supported by physical gold reserves, and recently anchored its national digital identity system on Ethereum, enabling nearly 800,000 citizens to access public services through blockchain-based verification.

GMC itself has designated bitcoin and two other crypto as strategic reserve assets, making it one of the earliest jurisdictions to formally hold multiple cryptocurrencies at the municipal or regional level. 

Green Digital Ltd., the infrastructure firm leading GMC’s development, is focused on green energy-powered data centers and blockchain infrastructure as part of the city’s long-term vision.

Earlier this month, Bhutan also entered a multi-year partnership with Cumberland DRW to support bitcoin reserve management, sustainable mining expansion, and broader digital asset infrastructure, including potential stablecoin initiatives.

At current bitcoin prices, 10,000 BTC would be worth $877,500,000.

CoinDesk reporting helped with the background of this article.  

This post Bhutan Pledges Up to 10,000 Bitcoin to Build New Mega-City first appeared on Bitcoin Magazine and is written by Micah Zimmerman.