The Royal Government of Bhutan transferred approximately 929 Bitcoins (BTC), worth approximately $66.16 million, to crypto exchange Binance. On-chain data service Lookonchain first reported the transaction via X.
The transfers occurred in two tranches: an initial tranche of 100 BTC (approximately $7.1 million) at 9:09 a.m. UTC, followed by an additional 839 BTC (approximately $59 million) at 9:56 a.m. UTC. This information was corroborated by on-chain analytics platform Arkham, which has been monitoring Bhutan’s holdings 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 is Bhutan selling Bitcoin?
The reason for this substantial transfer remains unknown, fueling speculation within the BTC community. Large stock market deposits are often interpreted as warning signs of liquidation. Given Bhutan’s relatively small population (around 727,145), the move has raised questions about the government’s strategic intentions.
Bhutan has been harnessing its abundant hydropower resources to mine Bitcoin since 2019, transforming green energy into Bitcoin. This initiative is part of a broader strategy to diversify national reserves in the context of global economic trends. Substantial BTC reserves could potentially be used to finance national projects, improve liquidity, or stabilize the local economy during times of financial uncertainty.
Popular X user Pledditor (@Pledditor) commented that Bhutan does not seem to have the same view on BTC as El Salvador under President Nayib Bukele. Aside from its mining operations, the country has stored 1 BTC every day since March 16, 2023 and has never sold a single Bitcoin.
Pledditor wrote via X: “AFAIK, we never got confirmation that Bhutan shares the same view as El Salvador on Bitcoin. It seems that they simply see Bitcoin as a sort of 5-10 year asset flip rather than a longer term cash flow strategy like in El Salvador. They will regret it. »
Some analysts suggest that Bhutan could position itself for a market shift or secure liquidity for future projects. Others speculate that the government could capitalize on recent market gains.
The holdings are managed by Druk Holding & Investments, the investment arm of the state of Bhutan. With current reserves said to stand at 12,456 BTC, valued at approximately $886 million, Bhutan ranks among the largest known Bitcoin-holding nation-states. This is particularly notable given that many countries have acquired BTC through seizures linked to criminal activity, while Bhutan has actively mined BTC.
In addition to Bitcoin, Bhutan transferred 228.8 Ether (ETH), worth around $600,000, to a Binance hot wallet on October 18. The country’s remaining $1.7 million in Ether represents its only other significant crypto holding.
As of now, there has been no official statement from the Royal Government of Bhutan or Druk Holding & Investments regarding the transfers. The community is eagerly awaiting further information, with some looking to Prime Minister Tshering Tobgay for potential information on the government’s plans.
At press time, BTC was trading at $71,956.
Featured image created with DALL.E, chart from TradingView.com
