Key Highlights
- VanEck’s Head of Digital Asset, Matthew Sigel, has stated that “a dozen countries that are mining Bitcoin at the government level, and we expect that to proliferate.”
- Amid the jump in the BTC’s hashrate and current downfall in the BTC price, the government-backed Bitcoin mining activity will boost the network’s security
- Recently, BTC’s mined supply has officially surpassed 20 million BTC
On March 11, Matthew Sigel, Head of Digital Assets Research at asset manager VanEck, stated in a CNBC Squawk Box interview that there are a “dozen countries that are mining Bitcoin at the government level, and we expect that to proliferate.”
Bitcoin Network’s Hashrate Reaches New Heights
Sigel’s statement is coming while the Bitcoin network’s total hashrate reached 1.061 ZH/s (1,061 EH/S) with a mining difficulty of 145.04 trillion as of now, according to CoinWarz. Amid the ongoing geopolitical tension, this number shows that the network is performing well near all-time highs despite the dip in the price around $70,000. However, despite the dip in the price, BTC is showing great resilience in the ongoing geopolitical tension in the Middle East.
Unlike private mining companies that only focus on generating profit, these country-level operations are using Bitcoin mining as a major infrastructure. These governments are directing surplus or other additional energy resources into state-based BTC mining operations, such as hydropower, geothermal, or flared natural gas. This allows them to accumulate BTC directly onto national balance sheets at near-zero marginal cost.
Bhutan’s Bitcoin mining strategy has impressed the world and encouraged other countries to follow in its footsteps. Since 2019, the state-owned Druk Holding and Investments (DHI) has leveraged the kingdom’s enormous Himalayan hydropower to mine BTC.
By late 2024, the country had created a peak reserve of approximately 13,000 BTC. Even after cutting down its holdings through $42.5 million in over-the-counter sales in 2026, which left approximately 5,400 BTC valued at approximately $381 million, its mining operations are still running. The revenue generated from the BTC mining was used by the government for healthcare, education, and public salaries.
El Salvador has also taken similar steps, as its government has mined approximately 474 BTC as of now. Its operation is still running by using 1.5 megawatts of geothermal power generated from the Tecapa volcano. This mining activity is directly related to President Nayib Bukele’s decision to establish BTC as legal tender.
VanEck research from February to March 2026 report revealed that up to 13 governments are engaging at central or state-linked levels. Apart from Bhutan and El Salvador, there are other governments also running BTC mining operations, such as Oman, the United Arab Emirates, Paraguay, Iran, Ethiopia, and others.
This adoption of BTC mining is boosting network security and decentralizing hashrate away from private companies. While global BTC energy consumption estimates have been in the 170 to 180 terawatt-hours range based on Cambridge CBECI methodology, and the hash rate is continuously increasing, the participation of governments in the BTC mining sector could create stable hashing power in the coming years.
Bitcoin has recently achieved a major milestone as its circulating mined supply has now surpassed 20 million BTC, which is more than 95% of Bitcoin’s hard-capped total of 21 million coins. This mark was crossed around March 9 at approximately block height 940,000, with the 20 millionth coin mined amid ongoing network activity.
The first 20 million BTC were mined in roughly 17 years since the 2009 genesis block, thanks to higher initial block rewards starting at 50 BTC and pre-halving issuance rates. The remaining supply of 1 million BTC will take approximately 114 years from now due to its scarcity mechanism.
Also Read: US Bitcoin ETFs See $250 Million Inflows as $BTC Dips, Holds Near $69K
