Bhutan has announced a groundbreaking commitment of up to 10,000 bitcoin to support the long-term development of its ambitious Gelephu Mindfulness City (GMC). This pledge represents one of the most significant sovereign uses of bitcoin for national infrastructure and economic development globally. The Himalayan kingdom’s "Bitcoin Development Pledge" allocates a portion of its sovereign bitcoin holdings, currently valued between approximately $860 million and $1 billion, to back this new special administrative region situated in southern Bhutan. Officials have underscored that this allocation is primarily for long-term capital preservation rather than immediate spending through asset sales. Bhutan is actively exploring various deployment mechanisms, including collateralized lending, sophisticated treasury and yield strategies, and strategic long-term holding, to finance infrastructure and development while maintaining exposure to bitcoin’s potential appreciation. Final decisions regarding the precise deployment of these assets are expected to be announced in the coming months.

Gelephu Mindfulness City is a central pillar in Bhutan's broader strategy to diversify its economy, moving beyond traditional sectors like hydropower and tourism. Launched in 2024, the project envisions a future economic hub with a strong focus on finance, cutting-edge technology, green energy, healthcare, advanced agriculture, and high-value tourism. Spanning approximately 1,544 square miles, which accounts for about 10% of Bhutan’s total territory, the city is strategically located near the Indian border. Its development is meticulously aligned with the country's unique philosophy of Gross National Happiness, emphasizing sustainability and overall social well-being.

King Jigme Khesar Namgyel Wangchuck formally announced this substantial bitcoin commitment during his National Day Address, framing it as a crucial generational investment designed to generate quality jobs and diverse opportunities for Bhutanese youth. The King stated, “As your King, I must ensure that every Bhutanese is a custodian, stakeholder, and beneficiary of GMC. This commitment is for our people, our youth, and our nation.” Complementing this, a new land policy associated with the project will empower landowners to act as shareholders in the city's development, ensuring that citizens across all regions share in the economic upside. Given that a significant portion of the land involved is state-owned, the government anticipates that the benefits will be broadly distributed nationwide.

Bhutan's substantial bitcoin holdings are the result of several years of discreet, state-backed mining operations. Beginning around 2019–2020, the country judiciously converted its surplus hydroelectric energy into digital assets, positioning itself as one of the pioneering sovereign bitcoin miners. This innovative strategy enables Bhutan to monetize unused energy capacity without any corresponding increase in its environmental impact. While estimates from various analytics providers range from roughly 6,000 to over 11,000 BTC, these holdings firmly place the Himalayan kingdom among the world's largest sovereign bitcoin holders. At current bitcoin prices, 10,000 BTC alone is valued at $877.5 million.

The bitcoin pledge is an integral part of Bhutan's expansive and ongoing national blockchain strategy. The country has already successfully implemented crypto-enabled payments across its burgeoning tourism sector through strategic partnerships with DK Bank and Binance Pay. This allows visitors to conveniently pay with over 100 digital assets at a wide array of establishments, including hotels, airlines, and local merchants, with more than 100 tourism-related businesses now accepting these payments. Furthermore, Bhutan has introduced TER, a sovereign-backed digital token reportedly supported by physical gold reserves, and has anchored its national digital identity system on Ethereum, providing nearly 800,000 citizens with access to public services through secure blockchain-based verification. Significantly, Gelephu Mindfulness City itself has officially designated bitcoin and two other cryptocurrencies as strategic reserve assets, making it one of the earliest jurisdictions to formally hold multiple cryptocurrencies at a municipal or regional level.

To further bolster its digital asset initiatives, Bhutan recently entered into a multi-year partnership with Cumberland DRW. This collaboration is designed to enhance bitcoin reserve management, facilitate the sustainable expansion of mining operations, and develop broader digital asset infrastructure, potentially including stablecoin initiatives. Green Digital Ltd., the specialized infrastructure firm leading GMC’s development, is specifically focused on establishing green energy-powered data centers and robust blockchain infrastructure, which are deemed vital to the city's long-term vision.