The Royal Government of Bhutan has transferred approximately 929 Bitcoin (BTC), worth approximately $66.16 million, to crypto exchange Binance. On-chain data service Lookonchain first reported this activity with X.
The transfer happened in two stages: the first 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 crypto exchange since it invested 381 BTC, worth $24.1 million at the time, on Kraken on July 1.
Why Is Bhutan Selling Bitcoin?
The reason for this massive transfer remains undisclosed, fueling speculation among the BTC community. Large deposits in the exchange are often interpreted as precursors to liquidation. Given Bhutan’s estimated population of 727,145, the move has raised questions about the government’s intentions.
Bhutan has been using its vast hydroelectric resources to mine Bitcoin since 2019, successfully converting green energy into Bitcoin. This plan is in line with a broader strategy to diversify national reserves amid global economic trends. Large BTC reserves may be used to fund national projects, improve liquidity, or stabilize local economies during times of financial uncertainty.
Popular X-user Pledditor (@Pledditor) noted that Bhutan does not seem to have the same view on BTC as El Salvador under President Nayib Bukele. Apart from its mining activities, the country has been accumulating 1 BTC every day since March 16, 2023, and has never sold a single Bitcoin.
Pledditor wrote about X: “AFAIK, we have never received confirmation that Bhutan has the same opinion as El Salvador on Bitcoin. It seems that they see Bitcoin as some sort of 5-10 year asset rather than a long term savings strategy like El Salvador. They will regret this.”
Some analysts suggest that Bhutan may position itself in the market or get financing for future projects. Others think that the government may take advantage of recent market gains.
The funds are managed by Druk Holding & Investments, Bhutan’s state finance arm. With current reserves reported to be 12,456 BTC, worth an estimated $886 million, Bhutan ranks among the country’s largest known holders of Bitcoin. This is particularly evident as many countries have received BTC through seizures related to criminal activities, and Bhutan has actively mined BTC.
In addition to Bitcoin, Bhutan transferred 228.8 Ether (ETH), worth about $ 600,000, to the hot Binance wallet on October 18. The country’s remaining 1.7 million dollars in Ether represents only one other thing important for holding crypto.
As of now, there has been no official statement from the Royal Government of Bhutan or Druk Holding & Investments regarding the transfer. The public is looking forward to more information, and some are looking to Prime Minister Tshering Tobgay for information about government plans.
At press time, BTC traded at $71,956.
The featured image was created with DALL.E, a chart from TradingView.com
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