The Kingdom of Bhutan has pledged 10,000 Bitcoin to support the development of its flagship Gelephu Mindfulness City.
Bhutan is estimated to hold around 11,286 Bitcoin in total, making it the fifth-largest known sovereign holder globally.
The Bitcoin allocation will be drawn from the country’s national reserves, much of which has been accumulated through domestic mining operations.
Gelephu Mindfulness City, located in southern Bhutan, was launched in 2024 as a new special administrative region.
The project aims to curb youth emigration by creating high-value employment opportunities within the country.
Bhutan said the city is intended to become a major economic hub spanning finance, tourism, green energy, technology, healthcare and agriculture.
The city will offer regulatory flexibility designed to attract crypto and fintech firms.
Officials said the region will also support the expansion of Bhutan’s Bitcoin mining activities.
Gelephu Mindfulness City covers roughly 1,544 square miles, or about 10% of Bhutan’s total land area.
The government said the Bitcoin allocation, valued at about $875 million, will be managed through risk-controlled treasury strategies.
Bhutan said it is considering a mix of yield generation, long-term holding and capital preservation approaches.
“Bitcoin’s enduring strength lies in its ability to compound value over time,” the government said.
“Any use of Bitcoin will be guided by strong governance and prudence, with an emphasis on capital preservation, appropriate oversight, and transparency,” it said.
The initiative forms part of Bhutan’s broader national Bitcoin Development Pledge.
The policy seeks to leverage digital assets to support long-term economic growth and financial resilience.
King Jigme Khesar Namgyel Wangchuck said the project is designed to benefit the entire population.
“We are therefore developing a new land policy that protects landowners, prevents widening disparities, and ensures shared national prosperity,” King Jigme Khesar Namgyel Wangchuck said.
He compared the city’s structure to a company where citizens effectively act as shareholders.
A masterplan, legal framework and governance structure for the city have already been announced.
Construction work has begun to prepare key development sites.
The city has introduced crypto-based payments for merchants and tourism services.
Bhutan has also launched TER, a sovereign-backed digital token linked to physical gold.
Officials said the city will be built in phases over the next 20 years.
At the time of reporting, Bitcoin price was $86,869.78.