The Royal Government of Bhutan has transferred roughly 929 Bitcoin (BTC), valued at around $66.16 million, to the crypto exchange Binance. On-chain data service Lookonchain first reported the transaction via X.
The transfers occurred in two tranches: an initial 100 BTC (roughly $7.1 million) at 9:09 am UTC, followed by a further 839 BTC (about $59 million) at 9:56 am UTC. This information was corroborated by the on-chain analytics platform Arkham, which has been monitoring Bhutan’s holdings since September.
Notably, that is the primary time Bhutan has sent Bitcoin to a crypto exchange since depositing 381 BTC, price $24.1 million on the time, to Kraken on July 1.
Why Is Bhutan Selling Bitcoin?
The rationale behind this substantial transfer stays undisclosed, fueling speculation throughout the BTC community. Large deposits to exchanges are sometimes interpreted as precursors to a liquidation. Given Bhutan’s relatively small population of roughly 727,145, the move has prompted questions on the federal government’s strategic intentions.
Bhutan has been leveraging its abundant hydroelectric resources to mine Bitcoin since 2019, effectively turning green energy into Bitcoin. This initiative aligns with a broader technique to diversify national reserves amid global economic trends. The substantial BTC reserves could potentially be utilized to fund national projects, enhance liquidity, or stabilize the local economy during financial uncertainties.
Popular X user Pledditor (@Pledditor) commented that Bhutan doesn’t appear to have the identical view on BTC as El Salvador under President Nayib Bukele. Besides its mining operations, the country has been stacking 1 BTC on daily basis since March 16, 2023, and has never sold a single Bitcoin.
Pledditor wrote via X: “AFAIK, we’ve never gotten confirmation that Bhutan shares the identical view as El Salvador on Bitcoin. It’s looking more like they simply see Bitcoin as some form of 5-10 12 months asset flip relatively than a longer-term treasury strategy like El Salvador. They will regret this.”
Some analysts suggest that Bhutan could possibly be positioning itself for a market move or securing liquidity for upcoming projects. Others speculate that the federal government could also be capitalizing on recent market gains.
The holdings are managed by Druk Holding & Investments, Bhutan’s state investment arm. With current reserves reportedly at 12,456 BTC, valued at roughly $886 million, Bhutan ranks amongst the most important known nation-state holders of Bitcoin. This is especially notable on condition that many countries have acquired BTC through seizures related to criminal activities, whereas Bhutan has actively mined the BTC.
Along with Bitcoin, Bhutan transferred 228.8 Ether (ETH), price about $600,000, to a Binance hot wallet on October 18. The nation’s remaining $1.7 million in Ether represents its only other significant crypto holding.
As of now, there was no official statement from the Royal Government of Bhutan or Druk Holding & Investments regarding the transfers. The community is keenly awaiting further information, with some seeking to Prime Minister Tshering Tobgay for potential insights into the federal government’s plans.
At press time, BTC traded at $71,956.
Featured image created with DALL.E, chart from TradingView.com