Bhutan’s Sovereign Wealth Fund Makes Secret Crypto Play Via BlockFi And Celsius
Bhutan, a small, landlocked country in South Asia, has been quietly investing in cryptocurrencies, including bitcoin and ether, for over a year through its sovereign investment arm, Druk Holding & Investments.
The investment arm is known for managing a portfolio of homegrown assets, including a local cheesemaker, several hydropower plants, and the Royal Bhutan Airlines, which operates five planes. However, it was recently revealed that the fund had also invested millions of dollars in digital assets, including cryptocurrency, through its accounts with crypto lenders BlockFi and Celsius.
According to Forbes, court documents reveal that BlockFi and Celsius had interactions with Bhutan’s $2.9 billion sovereign investment arm, Druk Holding & Investments. BlockFi filed a complaint accusing Druk of defaulting on its $30 million loan repayment, while Celsius disclosed that Druk made multiple trades between April and June 2022, depositing, withdrawing, and borrowing various cryptocurrencies. In the three months shown in the Celsius filing, Druk withdrew over $65 million and deposited nearly $18 million in digital assets.
Bhutan’s recent investment in cryptocurrency via its sovereign investment arm, Druk Holding & Investments, has led to questions about the country’s relationship with the volatile crypto economy. Bhutan’s economy is largely based on agriculture and forestry, and its infrastructure started supporting cell phones only two decades ago.
Druk Holding & Investments was established in 2007 through a royal charter from King Jigme Khesar Namgyel Wangchuck to safeguard the country’s wealth for the long-term benefit of its shareholders, the people of Bhutan. Although the investment arm has been described as a sovereign wealth fund, it operates more like a state-owned enterprise, according to its employees, partners, and the company itself.
