In a historic speech delivered during Bhutan’s National Day on December 17, 2025, King Jigme Khesar Namgyel Wangchuck announced an unprecedented initiative: the allocation of 10,000 bitcoins (BTC), valued at approximately $1 billion, to the development of Gelephu Mindfulness City (GMC). This bold decision positions the Himalayan kingdom as a major player in the institutional adoption of cryptocurrencies.
A Historic Royal Announcement
The Bhutanese sovereign justified this massive allocation with a deeply inclusive vision: « As King, I must ensure that every Bhutanese is a custodian, shareholder, and beneficiary of GMC. This commitment is for our people, our youth, and our nation. » This declaration reveals an ambitious strategy of economic diversification using the kingdom’s digital reserves as a development lever.
The initiative, named the « Bitcoin Development Pledge, » represents one of the largest sovereign allocations of digital assets ever made for infrastructure purposes. It demonstrates exceptional confidence in Bitcoin’s future value and its potential as a tool for national development.
Bhutan: A Discreet Giant of Bitcoin Mining
Bhutan is no newcomer to the crypto ecosystem. Thanks to its abundant hydroelectric resources, the kingdom has been mining Bitcoin for several years through its sovereign fund, Druk Holding & Investments (DHI). This approach allows the country to transform its surplus renewable energy into digital wealth without having to purchase assets on the open market.
According to Arkham Intelligence data, Bhutan currently holds 5,984 BTC worth over $522 million, positioning it as the seventh-largest sovereign Bitcoin holder globally. Other estimates, such as those from Bitbo, assess reserves at approximately 11,286 BTC, worth over $986 million, which would place the country in fifth place.
Regardless of the estimate, the allocation of 10,000 BTC represents the majority of the kingdom’s national reserves, demonstrating deep conviction in the country’s Bitcoin strategy.
Gelephu Mindfulness City: Vision of a Futuristic Economic Hub
Launched in 2024, Gelephu Mindfulness City is a special administrative region located in southern Bhutan. Covering approximately 1,544 square miles, or nearly 10% of the national territory, this ambitious project aims to create an economic hub capable of retaining Bhutanese youth by generating high-value jobs.
The city is designed to attract businesses in several strategic sectors:
- Finance and fintech services
- Sustainable tourism
- Green energy and crypto mining
- Technology and innovation
- Health and wellness
- Smart agriculture
Its regulatory framework offers particular flexibility for crypto and fintech companies, making GMC an ideal platform to expand mining operations and develop the kingdom’s blockchain ecosystem.
An Innovative Management Strategy: No Sale, But Yield Generation
Unlike an asset liquidation, Bhutan has clearly indicated that it does not plan to sell the allocated Bitcoins. Jigdrel Singay, GMC board administrator, explained that the 10,000 BTC « will be held explicitly for the benefit of GMC » and represent « both a delegation of reserves and a proactive effort to generate returns. »
Several management strategies are under consideration:
- Collateralization of BTC holdings to obtain liquidity without selling
- Yield strategies with controlled risk through secure DeFi protocols
- Long-term holding with a capital preservation approach
This approach emphasizes transparency, rigorous oversight, and a long-term vision, marking a significant evolution in the sovereign use of digital assets.
Bhutanese Citizens Become Shareholders
A revolutionary component of this initiative concerns transforming citizens into shareholders. The King explained: « Think of GMC as a company and landowners as its shareholders. Since most land is state-owned, Bhutanese from all Dzongkhags (districts) will share in its success. »
This innovative land policy aims to protect owners, prevent increasing inequality, and ensure shared prosperity. It allows citizens from all regions of the country to directly benefit from the economic growth generated by the city.
Deep Integration of Digital Assets
GMC is not limited to Bitcoin. The city has already integrated various digital assets into its economic ecosystem:
- TER, a digital token backed by physical gold, launched as a sovereign currency
- Activation of crypto payments at merchants and tourist services
- Proposal to include BTC, ETH, and BNB in national strategic reserves
This adoption is part of a broader approach to decentralizing national identity. Crown Prince Jigme Namgyel Wangchuck became the first citizen to establish his identity on the Ethereum blockchain, with Vitalik Buterin’s participation. Bhutan plans to anchor national digital identity on Ethereum by early 2026.
A 20-Year Vision
The development of Gelephu Mindfulness City will occur in phases over the next two decades. A master plan and legal framework have already been unveiled, with the appointment of a board of directors and a governor. Construction work has already begun to prepare sites.
The city is envisioned as a model of sustainable development, inspired by Buddhist spiritual heritage and focused on Gross National Happiness (GNH) rather than pure economic growth. This unique approach positions Bhutan as a pioneer in creating a conscious and technologically advanced development model.
Major Geopolitical Implications
This initiative places Bhutan at the forefront of institutional cryptocurrency adoption. As the fifth or seventh largest sovereign Bitcoin holder, the kingdom demonstrates how a small nation can strategically use digital assets to stimulate economic development while preserving its cultural and environmental values.
The project is already attracting attention from international investors and could serve as a model for other jurisdictions seeking to diversify their strategic reserves. In March 2025, GMC plans to convene a high-level meeting bringing together government officials and industry leaders to discuss recognition of digital assets in strategic reserves.
Conclusion: A Model for the Future
Bhutan’s commitment of 10,000 Bitcoin worth $1 billion to Gelephu Mindfulness City represents a major milestone in the sovereign use of digital assets. By combining a long-term holding strategy with a vision of sustainable and inclusive development, the kingdom is creating a unique model where blockchain technology, national prosperity, and cultural heritage meet.
This initiative demonstrates that cryptocurrencies can serve far more than simple speculative investment, but can become powerful tools for national development, job creation, and preservation of societal values. Bhutan, with its prudent yet visionary approach, may well inspire other nations to follow a similar path in the coming years.
The Himalayan kingdom’s bet on Bitcoin and Gelephu Mindfulness City could redefine the role of cryptocurrencies in the global economy and establish a new paradigm for sustainable development in the digital age.
