The Royal Government of Bhutan has transferred approximately 929 Bitcoin (BTC), worth approximately $66.16 million, to cryptocurrency exchange Binance. On-chain data service Lookonchain first reported the transaction via X.
The transfers took place in two tranches: an initial 100 BTC (approximately $7.1 million) at 9:09 UTC, followed by another 839 BTC (approximately $59 million) at 9:56 UTC. This information was confirmed by on-chain analytics platform Arkham, which has been monitoring Bhutan’s assets since September.
Notably, this is the first time Bhutan has sent Bitcoin to a crypto exchange since depositing 381 BTC, worth $24.1 million at the time, to Kraken on July 1.
Why does Bhutan sell Bitcoin?
The rationale behind this substantial transfer remains unknown, fueling speculation within the BTC community. Large deposits on exchanges are often interpreted as precursors to a liquidation. Given Bhutan’s relatively small population of about 727,145, the move has raised questions about the government’s strategic intentions.
Bhutan has taken advantage of this abundant hydropower resources Been mining Bitcoin since 2019, effectively converting green energy into Bitcoin. This initiative is part of a broader strategy to diversify national reserves amid global economic trends. The substantial BTC reserves could potentially be used to finance national projects, improve liquidity or stabilize the local economy during financial uncertainties.
Popular In addition to its mining activities, the country has been stack 1 BTC every day since March 16, 2023, and has never sold a single Bitcoin.
Advocate wrote via It seems more like they simply see Bitcoin as some kind of asset flip for the next five to ten years, rather than a longer-term treasury strategy like in El Salvador. They will regret this.”
Some analysts suggest Bhutan could be positioning itself for a market move or securing liquidity for upcoming projects. Others speculate that the government may benefit from recent market gains.
The assets are managed by Druk Holding & Investments, Bhutan’s state investment arm. With current reserves of a reported 12,456 BTC, worth approximately $886 million, Bhutan is among the largest known nation-state holders of Bitcoin. This is especially notable considering that many countries have acquired BTC through seizures related to criminal activities, while Bhutan has been actively mining the BTC.
In addition to Bitcoin, Bhutan transferred 228.8 Ether (ETH), worth approximately $600,000, to a Binance hot wallet on October 18. The remaining $1.7 million in Ether represents the country’s only other significant crypto asset.
So far, there has been no official statement from the Royal Government of Bhutan or Druk Holding & Investments on the transfers. The community is eagerly awaiting further information, with some looking to Prime Minister Tshering Tobgay for possible insights into the government’s plans.
At the time of writing, BTC was trading at $71,956.
Featured image created with DALL.E, chart from TradingView.com