The value of El Salvador’s Bitcoin holdings has skyrocketed past $500 million while the tiny Kingdom of Bhutan’s stash has surpassed an astounding $1 billion, all thanks to Monday’s face-ripping BTC rally. But while President Nayib Bukele’s big crypto bet grabs headlines, Bhutan’s under-the-radar Bitcoin play may be the real story to watch.
Bhutan’s Bitcoins Worth One-Third of GDP
According to data from Arkham Intelligence, the small South Asian state, with a population of just 800,000 (compared to El Salvador’s 6.4 million), is sitting on a Bitcoin stash of 12,574 tokens. At current prices hovering around $87,000 per BTC, that’s worth a cool $1.1 billion.
To put that in perspective, the value of Bhutan’s Bitcoin holdings amounts to over one-third of the country’s sub-$3 billion GDP. El Salvador’s $500 million in Bitcoin, while impressive, equates to just 1.5% of its GDP.
Bhutan’s Secret Bitcoin Mining Boom
So how did this Himalayan nation amass such a substantial Bitcoin war chest? Through mining, apparently, as the country has an abundance of cheap, clean hydroelectric power. Back in September, Arkham reported that Bhutan was likely to become the world’s fourth-largest country in terms of Bitcoin holdings.
The tiny Kingdom of Bhutan is poised to become a major player in the Bitcoin arena thanks to its hydropower-fueled mining operations. With BTC prices soaring, Bhutan’s crypto coffers are now worth 30% or more of its entire economy.
An industry source familiar with Bhutan’s crypto scene
El Salvador Steadily Stacking Sats
Meanwhile, El Salvador began dollar-cost averaging into Bitcoin in November 2022 after scooping up coins on several dips during the 2021 bull run. President Bukele announced the country had broken even on its Bitcoin bet in December 2023. El Salvador’s Bitcoin strategy has been a constant thorn in the side of the IMF, which has raised concerns about the country’s financial situation.
However, those concerns seem to be easing. The nation just announced plans to buy back $2.5 billion of its dollar-denominated debt. El Salvador’s bonds have rallied 4.7% since Donald Trump’s election last week, according to Bloomberg.
Bitcoin’s transformative potential
The Bitcoin bets of El Salvador and Bhutan underscore the potential for the cryptocurrency to reshape national economies, especially in the developing world. By investing in and mining Bitcoin, these countries are not only diversifying their reserves but also positioning themselves to reap the rewards of the ongoing crypto revolution.
Key Takeaways:
- Bhutan’s Bitcoin holdings are now worth over $1 billion, equal to one-third of its GDP
- El Salvador’s Bitcoin stash has topped $500 million thanks to the recent price surge
- Bhutan has quietly become a Bitcoin mining powerhouse due to its abundant hydroelectric energy
- El Salvador’s financial situation is improving, with plans to buy back $2.5B in debt
As the Bitcoin rally continues to mint crypto millionaires and billionaires, it’s also minting a new class of Bitcoin-rich nations. And while El Salvador may be grabbing the limelight, don’t sleep on Bhutan. The Himalayan kingdom’s hydropower-driven Bitcoin boom could be a harbinger of how smaller nations can leverage crypto to leapfrog onto the global economic stage.
