The Royal Government of Bhutan transferred approximately 929 Bitcoins (BTC) worth approximately $66.16 million to the Binance cryptocurrency exchange. First, the data service on the Lookonchain reported transaction through X.
The transfers took place in two tranches: an initial 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 confirmed by the online analytical platform Arkham, which has been monitoring Bhutan’s resources since September.
Notably, this is the first time Bhutan has sent Bitcoin to a cryptocurrency exchange since depositing 381 BTC, then worth $24.1 million, with Kraken on July 1.
Why is Bhutan selling Bitcoin?
The reasons for this significant transfer remain undisclosed, fueling speculation within the BTC community. Gigantic deposits on stock exchanges are often interpreted as a harbinger of liquidation. Given Bhutan’s relatively diminutive population of about 727,145, the move raised questions about the government’s strategic intentions.
Bhutan has been using its bountiful hydroelectric resources to mine Bitcoin since 2019, effectively turning green energy into Bitcoin. This initiative is part of a broader strategy aimed at diversifying national reserves in the face of global economic trends. Significant BTC reserves can potentially be used to finance national projects, escalate liquidity, or stabilize the local economy during times of financial uncertainty.
Popular X user Pledditor (@Pledditor) commented that Bhutan does not have the same view on BTC as El Salvador under President Nayib Bukele. In addition to mining activities, as of March 16, 2023, the country has accumulated 1 BTC per day and has never sold a single Bitcoin.
Proxy he wrote via X: “AFAIK, we have never received confirmation that Bhutan shares the same view as El Salvador on Bitcoin. It appears they view Bitcoin simply as a sort of 5-10 year asset inversion rather than a long-term treasury strategy like El Salvador. They will regret this.”
Some analysts suggest Bhutan could prepare for a market move or secure liquidity for upcoming projects. Others speculate that the government may be benefiting from recent market gains.
The holdings are managed by Druk Holding & Investments, Bhutan’s state investment company. With current reserves reportedly totaling 12,456 BTC and valued at approximately $886 million, Bhutan ranks among the largest known Bitcoin holding nation states. This is particularly noteworthy given that many countries have acquired BTC through criminal-related seizures, while Bhutan actively mines BTC.
In addition to Bitcoin, on October 18, Bhutan transferred 228.8 Ether (ETH) worth approximately $600,000 to the Binance heated wallet. The remaining $1.7 million in Ether is the only other significant cryptocurrency holding.
So far, 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 turning to Prime Minister Tshering Tobgay for potential insight into the government’s plans.
At the time of publication, the BTC price was $71,956.
Featured image created with DALL.E, chart from TradingView.com
