Bhutan Allocates 10,000 Bitcoin to Finance Gelephu Mindfulness City

Bhutan has committed up to 10,000 Bitcoin, currently valued at about $1 billion, to support the development of Gelephu Mindfulness City (GMC), a planned economic zone in the country’s south.

The pledge was announced Wednesday and represents a direct allocation of sovereign digital asset reserves to a domestic infrastructure project. The government said the Bitcoin will be reserved specifically for GMC and will not be sold as part of the initiative.

King Jigme Khesar Namgyel Wangchuck addressed the project during his National Day speech, stating that the development is intended to benefit citizens across the country rather than a single region.

Under the plan, land tied to the project will be treated under a shareholder-style framework. Because most land is state-owned, the government said citizens from all districts will have a stake in the city’s long-term performance.

Bitcoin held for development, not liquidation

GMC board director Jigdrel Singay said the Bitcoin allocation will remain ring-fenced for the project and managed as a long-term reserve.

According to Singay, the government is evaluating multiple ways to use the holdings without selling them, including collateral-based structures, conservative yield strategies, and treasury management approaches designed to preserve value over time.

No final structure has been selected, and officials said decisions will be made in stages as the project advances.

One of the largest sovereign crypto commitments to infrastructure

The allocation ranks among the largest known cases where a government has committed digital assets directly to infrastructure development rather than treating them solely as financial reserves.

Bhutan has accumulated Bitcoin over several years, primarily through mining operations powered by domestic hydroelectric resources. The country currently holds 5,984 BTC, worth more than $520 million, placing it among the top sovereign Bitcoin holders globally, according to blockchain data.

This year, GMC formally designated Bitcoin, Ethereum, and BNB as strategic reserve assets. The city has also partnered with Binance Pay to enable cryptocurrency payments across parts of the tourism sector.

Separately, Bhutan integrated its national digital identity system with Ethereum, becoming the first country to anchor population-scale identity records on a public blockchain.

Recent digital asset initiatives at GMC

Last week, GMC introduced TER, a gold-backed digital token issued on Solana, with DK Bank acting as the exclusive distributor. The token is positioned as a regulated digital asset tied to physical gold reserves.

Officials said the issuance is intended to support controlled experimentation with digital assets while maintaining oversight and transparency standards.

The government said all digital asset initiatives connected to GMC will operate under defined governance rules, with an emphasis on long-term stewardship rather than short-term market activity.

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