The Royal Government of Bhutan transferred approximately 929 Bitcoins (BTC) worth approximately $66.16 million to cryptocurrency exchange Binance. On-chain data service Lookonchain first reported the transaction via X.
The transfer was made in two parts, with the first 100 BTC (approximately $7.1 million) sent at 9:09 a.m. UTC, followed by an additional 839 BTC (approximately $59 million) at 9:56 a.m. UTC. The money was sent to. 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 transferred Bitcoin to a cryptocurrency exchange since July 1, when it deposited 381 BTC, worth $24.1 million at the time, with Kraken.
Why is Bhutan selling Bitcoin?
The rationale behind this large transfer remains unclear, fueling speculation within the BTC community. A large deposit on an exchange is often interpreted as a precursor to liquidation. The move raises questions about the government's strategic intentions, given Bhutan's relatively small population of about 727,145 people.
Since 2019, Bhutan has been mining Bitcoin using its rich hydropower resources, effectively converting green energy into Bitcoin. This effort is consistent with a broader strategy to diversify national reserves amid global economic trends. Large BTC reserves could be used to fund national projects, increase liquidity, and stabilize local economies during times of financial instability.
Popular X user Pledditor (@Pledditor) commented that Bhutan does not seem to have the same views on BTC as El Salvador under President Nayib Boucle. In addition to mining operations, the country has been accumulating 1 BTC every day since March 16, 2023, but has never sold any Bitcoin.
Pledditor writes via X: “As far as I know, there is no confirmation that Bhutan shares the same views as El Salvador on Bitcoin. They seem to be looking at it as a type of asset conversion. They're going to regret this.”
Some analysts have suggested that Bhutan may be positioning itself for market moves or securing liquidity for future projects. Some speculate that the government may be taking advantage of recent market gains.
The holdings are managed by Druk Holding & Investments, Bhutan's state-owned investment arm. With current reserves reportedly at 12,456 BTC (worth approximately $886 million), Bhutan ranks as one of the largest known Bitcoin holders. This is particularly noteworthy given that Bhutan is actively mining BTC while many countries acquire BTC through seizures related to criminal activity.
In addition to Bitcoin, Bhutan transferred 228.8 Ether (ETH) worth approximately $600,000 to Binance's hot wallet on October 18th. The country's remaining $1.7 million in ether would be its only other significant crypto holdings.
At this time, there has been no official statement regarding the transfer from the Royal Government of Bhutan or Druk Holding and Investments. The community is eagerly awaiting further information, with some looking to Prime Minister Tshering Tobgay for insight into the government's plans.
At the time of writing, BTC was trading at $71,956.
Featured image created with DALL.E, chart on TradingView.com
