Bhutan allocates 10,000 Bitcoin to fund Gelephu Mindfulness City, using long-term strategies to preserve capital and drive sustainable growth.
Bhutan has committed 10,000 Bitcoin from its sovereign reserves to support the development of Gelephu Mindfulness City. The Himalayan kingdom had confirmed that the allocation will be used to create a new Special Administrative Region and economic zone in the southern part of the country. According to Arkham, currently, Bhutan has about 523.4 million in Bitcoin. Officials said the move was part of a long-term development strategy for the nation.
Bhutan Unveils Bitcoin Development Pledge
The government announced this week’s Bitcoin Development Pledge, allocating a portion of their sovereign Bitcoins to the project. At current prices, the reserved areas range from $860 million to $1 billion. Authorities emphasised that the funds are not for the immediate purpose of liquidation. Instead, the objective is to maintain capital while providing for infrastructure development.
BHUTAN JUST COMMITTED 10,000 BTC TO BUILD A NEW CITY
Bhutan stated today that they would use 10,000 BTC from their reserves to fund a new Special Administrative Region and economic zone dubbed “Gelephu Mindfulness City”.
We currently track $523.4M BTC held by Bhutan on Arkham.… pic.twitter.com/yg9whb9QPV
— Arkham (@arkham) December 17, 2025
Moreover, Bhutan intends to look at different financing mechanisms. These include collateralized lending, treasury management, yield strategies and intentional long-term holding. Officials believe such tools can fund development without having to sacrifice exposure to Bitcoin’s potential appreciation. Final decisions on how to deploy the assets will come in the coming months.
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Gelephu Mindfulness City is central to Bhutan’s overall economic vision. The project aims at diversifying the economy away from hydropower and tourism. At the same time, it is consistent with the Bhutanese philosophy of development in terms of sustainability, balance and social well-being. Authorities stressed that growth needs to be inclusive and remain environmentally responsible.
The city, which will be initiated in 2024, is planned near the Indian border. It will cover about 1544 square miles. The economic zone is an initiative to focus on activities in finance, technology, green energy, healthcare and high-end tourism. The officials anticipate the project will spur job creation and stem the tide of youth emigration.
Sovereign Bitcoin Strategy Supports Long-Term Vision
Digital assets have a long history in Bhutan. Since 2019, the country has been involved in state-supported mining of Bitcoins. It has used the excess hydro power to transform the excess clean energy into digital assets. Officials affirmed that mining will proceed without further increasing the impact on the environment.
Importantly, the Bitcoin commitment is part of a wider digital commitment. Bhutan has already launched blockchain-based initiatives in national systems. These include a national digital identity platform that is based on Ethereum. The country has also allowed payments for tourism and local merchants in cryptocurrency.
Recently, Bhutan introduced TER, a sovereign-backed token of gold. Authorities consider these initiatives as complementary components of a digital economy strategy. The goal is to modernise the financial infrastructure without losing sovereignty or stability. Bitcoin, in this case, is considered a strategic reserve asset.
Officials reiterated that Bitcoin would not be sold to cover short-term spending. Instead, the government wants to leverage structured financial strategies to unlock the value. This is a cautious approach in response to volatility in the markets. It also brings into focus faith in Bitcoin’s long-term role as a store of value.
Overall, the Gelephu Mindfulness City project is an ambitious experiment. Bhutan is integrating the use of digital assets, sustainability, and mindful development into a single economic model. If successful, the initiative could put the country in the unique position of being an example of sovereign Bitcoin use around the world. The next few months will see the strategy clarified in terms of how it will be realized in practice.