The Royal Government of Bhutan has transferred approximately 929 bitcoins (BTC), worth approximately $66.16 million, to cryptocurrency exchange Binance. Lookonchain data service first I mentioned Transaction via X.
The transfers took place in two tranches: an initial 100 BTC (about $7.1 million) at 9:09 AM UTC, followed by an additional 839 BTC (about $59 million) at 9:56 AM UTC. This information was confirmed 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 cryptocurrency exchange since depositing 381 Bitcoin, worth $24.1 million at the time, to Kraken on July 1.
Why is Bhutan selling Bitcoin?
The rationale behind this major transfer remains undisclosed, adding to speculation within the Bitcoin community. Large deposits on exchanges are often interpreted as a precursor to liquidation. Given Bhutan’s relatively small population of about 727,145 people, the move has raised questions about the government’s strategic intentions.
Bhutan has been tapping into its abundant hydroelectric resources to mine Bitcoin since 2019, effectively converting green energy into Bitcoin. This initiative is consistent with a broader strategy to diversify national reserves amid global economic trends. Large BTC reserves can be used to fund national projects, enhance liquidity, or stabilize the local economy during situations of financial uncertainty.
Popular Besides its mining operations, the country has been hoarding one bitcoin per day since March 16, 2023, and has never sold a single bitcoin.
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Some analysts suggest that Bhutan may be in a position to move in the market or secure liquidity for upcoming projects. Others speculate that the government may benefit from recent market gains.
The property is managed by Druk Holding & Investments, the government investment arm of Bhutan. With current reserves of 12,456 Bitcoin, worth approximately $886 million, Bhutan ranks among the largest known nation-states holding Bitcoin. This is especially notable considering that several countries have acquired Bitcoin through seizures related to criminal activities, while Bhutan has actively mined Bitcoin.
In addition to Bitcoin, Bhutan transferred 228.8 Ethereum (ETH), worth about $600,000 USD, to a Binance hot wallet on October 18. The country’s remaining $1.7 million is in Ethereum, its only other significant holding of cryptocurrencies.
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 more information, with some looking to Prime Minister Tshering Tobgay for potential insights into the government’s plans.
At press time, Bitcoin was trading at $71,956.
Featured image created with DALL.E, a chart from TradingView.com