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⚡Bhutan Holds More Bitcoin Than El Salvador🇧🇹

Croxroad

18 Sep 2024 — 4 min read

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📯 $758M in Bitcoin

The South Asian kingdom of Bhutan has emerged as a significant Bitcoin holder, with more of the cryptocurrency than El Salvador. On Sept. 16, onchain analytics platform Arkham Intelligence revealed that a group of addresses linked to Bhutan's Druk Holdings, the country's investment arm, holds 13,029 BTC, valued at approximately $758 million. This discovery marks the first public identification of Bhutan's Bitcoin holdings. Druk Holdings reportedly acquired this Bitcoin through mining operations and also possesses 656 ETH, along with smaller amounts of BNB and Polygon.

Arkham's analysis was further supported by satellite imagery showing the construction of mining facilities at the now-defunct Education City project, aligning with Bhutan's onchain mining activity timeline. Bhutan’s Bitcoin holdings represent a significant portion of its economy, equating to roughly a quarter of the country's expected 2024 GDP, projected to reach $3 billion. Bhutan began mining Bitcoin in 2019 using its abundant hydroelectric resources, and in 2023, it partnered with Bitdeer to scale up its mining operations with the goal of reaching 600 megawatts of capacity by 2025.

Comparatively, El Salvador, which began its Bitcoin acquisitions in 2021, holds 5,875 BTC, worth about $331 million—less than half of Bhutan’s holdings. El Salvador’s Bitcoin was purchased at a much higher price, averaging $43,900 per coin. Both countries, however, share a common approach in utilising renewable energy for mining, with El Salvador relying on geothermal energy from its volcanoes. Despite this, Bhutan's Bitcoin accumulation through mining presents a unique strategy that significantly bolsters its cryptocurrency reserves.

⚓ Cathedra Bitcoin Shifts Gears

Cathedra Bitcoin Inc. has announced a major shift in its corporate strategy, moving away from Bitcoin mining to focus on increasing its Bitcoin holdings. This new approach mirrors the strategy of MicroStrategy, which is well-known for its aggressive Bitcoin acquisition policy. Cathedra’s decision comes after an internal review revealed that mining has not been an effective way to boost the company’s Bitcoin per share. In fact, nine of the ten largest public Bitcoin miners hold less Bitcoin per share today than they did three years ago.

To address this issue, Cathedra plans to diversify into more stable revenue sources like developing and operating data centres. The profits from these operations will then be used to purchase additional Bitcoin. The company also intends to employ other tactics such as limited proprietary mining and utilising Bitcoin-linked financial instruments. As of now, Cathedra holds 43 Bitcoin, equating to 5 satoshis per share, and believes this pivot will deliver better returns to its shareholders as mining profitability continues to decline.

Cathedra's new strategy reflects its long-term view of Bitcoin as a global reserve asset. By reducing its dependence on mining, the company aims to enhance its financial stability and shareholder value. This move comes at a time when mining profits are struggling, with daily earnings at $42 per petahash per second (PH/s). Similar to MicroStrategy's recent $700 million offering to acquire more Bitcoin, Cathedra’s approach underscores the growing trend of companies shifting toward Bitcoin accumulation as a core business strategy.

🪝 How do I buy and sell stuff with Bitcoins?

Buying and selling with Bitcoin involves transferring digital currency between addresses, which function like bank accounts on the blockchain. For example, if Alice wants to buy pizza from Bob, she sends Bitcoin to Bob’s public address. Using her private key, Alice signs off on the transaction, which is then verified by miners and broadcast across the Bitcoin network. Once confirmed, Bob can access the Bitcoin, and the transaction is permanently recorded on the blockchain. The entire process typically takes around ten minutes, as miners ensure the transaction’s validity.

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