Bhutan unveiled a national Bitcoin Development Pledge Tuesday, committing up to 10,000 BTC worth approximately $1 billion to develop Gelephu Mindfulness City without liquidating its sovereign digital asset reserves.
King Jigme Khesar Namgyel Wangchuck announced the allocation during his National Day Address, framing the commitment as a generational investment in youth employment and national prosperity.
The pledge channels Bitcoin holdings into GMC development through mechanisms including collateralized lending, risk-managed yield strategies, and long-term holding approaches designed to preserve capital while financing infrastructure.
What Happened
The Himalayan kingdom will deploy up to 10,000 BTC towards developing Gelephu Mindfulness City, a Special Administrative Region in southern Bhutan designed around mindfulness, sustainability, and innovation.
Officials confirmed the final implementation strategy will be determined in coming months.
Options under consideration include collateralizing the Kingdom's BTC holdings, risk-managed yield and treasury strategies, and intentional long-term holding approaches designed to preserve and protect digital asset value.
"As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC," King Jigme Khesar Namgyel Wangchuck said during his address.
"This commitment is for our people, our youth, and our nation."
The monarch emphasized a new land policy ensuring Bhutanese citizens from all regions benefit from development proceeds, with landowners functioning as shareholders in the project.
Bhutan ranks among the world's largest sovereign Bitcoin holders, having accumulated reserves through hydropower-powered mining operations that began in 2019-2020.
The kingdom's renewable energy mining converts surplus hydroelectric capacity into digital assets without additional environmental impact.
Bhutan holds between 5,984 and 11,286 BTC according to various blockchain analytics platforms, valued at $520 million to $986 million.
The December 15 partnership with Cumberland DRW established a multi-year framework for Bitcoin reserve management, sustainable mining expansion, AI compute facilities, and national stablecoin development.
Read also: Thursday's CPI Report Could Pause Federal Reserve Cuts, Sparking Bitcoin Volatility
Why It Matters
The pledge represents one of the largest sovereign Bitcoin commitments for infrastructure development, positioning Bhutan at the forefront of nations integrating cryptocurrency into national economic strategy.
GMC launched in 2024 to reverse talent outflows by generating high-value local employment opportunities across finance, tourism, green energy, technology, healthcare, and agriculture sectors.
The city covers approximately 1,544 square miles, representing roughly 10% of Bhutan's territory near the Indian border.
Bhutan's broader blockchain strategy includes launching TER, a Solana-based sovereign digital token backed by physical gold reserves, which debuted December 11 through DK Bank.
The kingdom became the first nation to anchor its national digital identity system on Ethereum after migrating from Polygon in October, enabling nearly 800,000 citizens to verify identities and access public services.
Crypto payments across tourism merchants launched in May through partnerships with DK Bank and Binance Pay, allowing visitors to use over 100 cryptocurrencies for hotels, airline tickets, and local goods.
Over 100 merchants now accept digital assets throughout the tourism sector.
The Bitcoin pledge aligns with growing sovereign and corporate adoption of digital assets as institutional capital inflows accelerate.
Bhutan's approach emphasizes capital preservation and long-term value compounding over immediate liquidity needs.
The strategy demonstrates how smaller nations can leverage renewable energy resources and blockchain technology to diversify economic foundations while maintaining environmental sustainability commitments.
Green Digital Ltd, the crypto infrastructure firm leading GMC development, focuses on green energy-powered data centers supporting Bhutan's long-term blockchain sustainability goals.
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