Bhutan Commits $1 Billion in Bitcoin for 'Mindfulness City' Development Without Selling Reserves

Bhutan has announced a groundbreaking initiative to invest up to $1 billion in Bitcoin for the development of the Gelephu Mindfulness City, utilizing its own digital asset reserves rather than selling them. This strategic move aims to promote economic growth, employment for the youth, and tap into Bhutan's unique renewable energy resources.

Key Takeaways

Bhutan is committing up to 10,000 BTC (~$1 billion) for the Gelephu Mindfulness City project.
The country's investment strategy focuses on utilizing Bitcoin without converting it to cash.
Bhutan holds approximately 13,011 BTC, making it one of the world's largest government holders of Bitcoin, with a sustainable mining operation powered by hydroelectricity.
The Mindfulness City aims to attract international investment while maintaining Bhutanese cultural values.
Bhutan has integrated blockchain technology in various sectors, including national identity systems and tourism payments.

Bhutan Pledges $1 Billion in Bitcoin to Build 'Mindfulness City' Without Selling Reserves

Bhutan’s Innovative Bitcoin Investment for Mindfulness City

On Tuesday, Bhutan introduced a national Bitcoin Development Pledge, promising an investment of up to 10,000 BTC (approximately $1 billion) to foster the construction of the Gelephu Mindfulness City, all without selling any of its sovereign digital asset reserves.

King Jigme Khesar Namgyel Wangchuck made this announcement during his National Day Address, highlighting the commitment as a vital investment in job creation and national prosperity, connected to a new economic zone in southern Bhutan.

The allocation aims to channel Bitcoin holdings into the development of the Mindfulness City through various mechanisms such as collateralized lending, risk-managed yield strategies, and long-term holding to safeguard capital while facilitating infrastructure financing.

This initiative is possible due to years of dedication to capitalizing on Bitcoin’s compounding value over time rather than liquidating reserves for cash.

Bhutan's officials stated that detailed implementation plans are expected within the coming months, focusing on governance structures that prioritize capital preservation, appropriate oversight, and transparency.

Bhutan Bitcoin Mindfulness City - King Jigme Khesar Namgyel Wangchuck image

Sovereign Mining and Clean Energy Foundation

Bhutan ranks as the fifth-largest government holder of Bitcoin worldwide, having mined 13,011 BTC since 2021 using surplus hydroelectric power from the Himalayan rivers.

The eco-friendly mining operation converts excess national grid capacity into digital assets without any additional environmental impact, with the country’s crypto reserves now exceeding 11,286 BTC, valued at around $1.28 billion, according to Bitbo data.

Bhutan Bitcoin Mindfulness City - Government Bitcoin Holder table

The Kingdom’s abundant hydroelectric resources often surpass domestic energy demands, allowing for the transformation of clean energy into sustainable national assets via its power generation utility.

This strategy not only supports over 25% of Bhutan’s GDP but also adheres to the country's commitment to environmental sustainability, a cornerstone of its development philosophy that balances economic advancement with ecological care.

To further enhance its blockchain infrastructure, Bhutan established Green Digital Ltd in connection with the Mindfulness City and recently collaborated with Cumberland DRW on digital asset trading frameworks, expansion of sustainable mining, AI computing facilities, and the development of a national stablecoin.

Gelay Jamtsho, the chairman of Green Digital, remarked that this partnership effectively bridges Bhutan’s renewable energy resources with institutional-grade liquidity, helping the nation diversify beyond traditional industries.

Blockchain Implementation Across National Systems

In addition to mining, Bhutan has launched blockchain-based national identity systems for 800,000 citizens, transitioning from Polygon to Ethereum, a process completed in October. This shift offers Verifiable Credentials and digital signing capabilities.

Prime Minister Tshering Tobgay explained that utilizing Ethereum’s extensive distributed network boosts the security, transparency, and resilience of the digital infrastructure serving nearly all Bhutanese citizens.

Earlier this year, Bhutan enabled cryptocurrency payments for tourists in collaboration with DK Bank and Binance Pay, allowing visitors to spend over 100 cryptocurrencies on a variety of services ranging from airline tickets to roadside fruit stands.

Currently, over 100 local businesses accept digital currencies, with Damcho Rinzin, the tourism director, noting that this system supports innovation, inclusion, and sustainable development objectives.

Recently, Bhutan introduced the TER, a Solana-based token secured by physical gold reserves and distributed via DK Bank, placing the country among the few experimenting with state-backed tokenized assets.

Mindfulness City as an Economic Catalyst

The Gelephu Mindfulness City operates as a Special Administrative Region with the goal of attracting foreign investment through clear regulations and modern financial frameworks while preserving Bhutanese cultural heritage.

King Jigme Khesar Namgyel Wangchuck characterized the Mindfulness City as a collective national venture, emphasizing that citizens will be stakeholders, supported by new land policies that ensure equitable benefits from development, given that most land is state-owned.

“As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC,” he stated, likening GMC to a company where landowners act as shareholders.

Market Outlook Enhancing Strategic Holding

As of today, Bitcoin is trading at $87,274, showing a 1.9% increase during Asian trading hours, with exchange reserves reaching record lows, while traders await U.S. inflation data.

Prominent asset managers like Bitwise and Grayscale forecast that Bitcoin will surpass its previous all-time highs in 2026, even though traditional market theories often expect corrections. Institutional investments from firms such as Morgan Stanley and Wells Fargo are likely to enhance the crypto market's adoption.

Bhutan’s pledge resonates with the rising acceptance of digital assets by sovereign nations and corporations, as global crypto Exchange-Traded Products (ETPs) have drawn $87 billion in net inflows since U.S. products debuted in January 2024.