Bhutan's Economy and Bitcoin Sales

Bhutan’s Economy and Bitcoin Sales

Recently, Bhutan has drawn the attention of crypto investors by actively liquidating its Bitcoin (BTC) reserves. In the past three weeks, the kingdom’s authorities sold 100 BTC, earning approximately $6.8 million, which, according to analysts from Arkham, is only part of a broader asset sale strategy.

Accumulation History and Current Situation

Bhutan began accumulating bitcoins through mining, reaching peak reserves of 13,000 BTC. However, recent events, such as the fourth Bitcoin halving (block reward reduction), have significantly affected mining, reducing its profitability, which forced the authorities to reconsider their strategies.

BTC Sales and Their Motives

According to reports, since September, the kingdom has sold BTC worth at least $100 million. The possible motive behind these actions is to maintain financial stability amid changing market conditions.

Partnership with Bitdeer and Industry Challenges

Bhutan actively collaborates with Bitdeer to develop mining infrastructure. With a capacity of 600 MW, the project with Bitdeer included creating a data center in Gedu. However, the achievement of the planned hash rate of 20 EH/s has slowed down. This was influenced by reduced profitability after the halving in April 2024.

Impact on the Global Mining Industry

The profitability crisis in mining, which began in the second half of 2024, is considered the most severe by experts. The drop in Bitcoin prices and rising energy tariffs accelerated the shutdown of equipment, which aligned with global trends where many companies were forced to stop.

Conclusion

Bhutan serves as a striking example of the change in crypto-economics due to both external and internal factors. The risks for the government include dependence on the global BTC price and profitability issues. However, successful adaptation may open new revenue opportunities.

• Threat: BTC market fluctuations
• Opportunity: Developing sustainable mining infrastructure

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