The Kingdom of Bhutan is mobilizing 10,000 BTC, or nearly $1 billion, to build a city focused on meditation, clean energy, and innovation. This project is based on a sustainable energy strategy and the gradual integration of Bitcoin and its mining into the national economy.
Bhutan is betting on Bitcoin to finance a sustainable and spiritual city
The government of the Kingdom of Bhutan recently announced plans to invest 10,000 Bitcoins, worth $864 million at current prices, to support the development of its new city: Gelephu Mindfulness City (GMC).
This new city aims to become a model of sustainability, based on “mindfulness,” technology, and respect for the environment. It will be powered by the country’s surplus hydroelectric energy, which has already been used for several years to mine Bitcoin. The funds committed will not only be used to build infrastructure, but should also create jobs, develop local skills in technology and finance, and attract international partners.
Bhutan is now the country with the largest Bitcoin reserves in proportion to its gross domestic product: more than 11,200 BTC, or about 22.5% of its GDP, worth nearly $1 billion. This ranks it fourth in the world among Bitcoin-holding countries, ahead of even El Salvador, which adopted BTC as legal tender in 2021.
The kingdom has been able to build up this fortune thanks to its significant hydroelectric energy surpluses, which it has been exploiting for several years. However, it was not until September 2024 that the existence of this reserve was revealed, further highlighting the role that Bitcoin mining can play in leveraging energy surpluses and developing renewable energies.
The country has also launched the TER, a gold-backed token, and is already integrating crypto payments into tourism and commerce.
Why Bhutan’s project could succeed where El Salvador’s Bitcoin City is struggling
This Bitcoin- and mining-based city project is reminiscent of Bitcoin City, announced in 2021 by Salvadoran President Nayib Bukele.
However, construction of this ambitious city has been largely slowed down, relegated behind other national priorities such as security, education, and other infrastructure projects. Projects such as port renovation and the construction of expressways are now considered more urgent in order to prepare the ground.
One of the main obstacles remains the energy issue: Bitcoin City is to be powered by geothermal power plants using energy from the nearby volcano. However, these facilities are expensive to build and require several years of development before they can become operational.
In contrast, Bhutan already benefits from energy surpluses from its hydroelectric power plants, as well as the financial resources needed to support the construction of Gelephu Mindfulness City.
