Bhutan has made a groundbreaking commitment by pledging up to 10,000 bitcoin in support of the long-term development of Gelephu Mindfulness City (GMC). This initiative represents one of the most ambitious sovereign uses of bitcoin for national infrastructure and economic growth so far. The announcement came this week as the Himalayan kingdom introduced the Bitcoin Development Pledge, allocating a substantial portion of its sovereign bitcoin holdings, valued between approximately $860 million and $1 billion at current market prices, to bolster the new special administrative region in southern Bhutan.
Officials from the Bhutanese government clarified that this allocation aims to preserve capital over the long term rather than to facilitate immediate expenditures through asset sales. Instead, Bhutan is exploring various strategies, including collateralized lending, treasury and yield strategies, as well as a long-term hold approach, to finance infrastructure projects while also maintaining potential exposure to bitcoin’s appreciation.
Decisions on the precise utilization of these assets are anticipated in the forthcoming months. GMC plays a pivotal role in Bhutan’s broader initiative to diversify its economy beyond its traditional reliance on hydropower and tourism. The project is closely aligned with the nation’s development philosophy, which emphasizes sustainability and social well-being.
Launched in 2024, GMC is envisioned as a future economic hub, focusing on emerging sectors such as finance, technology, green energy, healthcare, agriculture, and high-value tourism. The city covers an expanse of approximately 1,544 square miles, accounting for about 10% of Bhutan’s total territory and located near the Indian border.
During his National Day Address, King Jigme Khesar Namgyel Wangchuck announced the bitcoin commitment, positioning it as a generational investment designed to create quality jobs and opportunities for the youth of Bhutan. He emphasized the importance of ensuring that every Bhutanese citizen is a custodian, stakeholder, and beneficiary of GMC, framing the commitment as fundamentally for the people, especially the younger generation.
In conjunction with the project, a new land policy will treat landowners as shareholders in the city’s development, thus ensuring that citizens across all regions partake in the economic benefits. Given that much of the land involved is state-owned, the Bhutanese government asserts that the advantages will be broadly distributed nationwide.
Bhutan’s bitcoin holdings have emerged from several years of state-supported mining operations, leveraging surplus hydroelectric energy. Since about 2019–2020, the kingdom has been quietly converting excess renewable power into digital assets. As one of the earliest sovereign bitcoin miners, Bhutan has adopted a strategy that allows for the monetization of unused energy capacity without further increasing its environmental impact. Estimates of the total bitcoin reserves held by Bhutan vary widely among analysts, ranging from around 6,000 to over 11,000 BTC, which places the country among the world’s leading sovereign bitcoin holders.
The bitcoin pledge is part of a broader national blockchain strategy already in motion. Bhutan has rolled out crypto-enabled payment systems throughout its tourism sector via partnerships with DK Bank and Binance Pay, allowing visitors to make payments using over 100 different digital assets at hotels, airlines, and local merchants. Currently, more than 100 businesses involved in tourism have adopted crypto payment systems.
Additionally, Bhutan has introduced the TER, a sovereign-backed digital token purportedly supported by physical gold reserves. The nation has also anchored its national digital identity system on Ethereum, allowing nearly 800,000 citizens access to public services through blockchain-based verification.
Gelephu Mindfulness City has designated bitcoin along with two other cryptocurrencies as strategic reserve assets, making it one of the first jurisdictions to formally hold multiple cryptocurrencies at a municipal level. Green Digital Ltd., the firm spearheading GMC’s development, is committed to creating green energy-powered data centers and blockchain infrastructure as part of the city’s long-term vision.
Earlier this month, Bhutan entered into a multi-year partnership with Cumberland DRW to enhance bitcoin reserve management, support sustainable mining expansion, and develop broader digital asset infrastructure, which may include potential stablecoin initiatives. At current bitcoin valuations, the pledged 10,000 BTC is estimated to be worth approximately $877.5 million.
