Bhutan Holds Over $1 Billion in Bitcoin Reserves
The government of Bhutan holds over $1 billion in Bitcoin (BTC), driven by the cryptocurrency's value increase this year, according to Arkham Intelligence. Recently, Bhutan transferred $65 million worth of Bitcoin to Binance but continues to mine more, aligning with a trend of countries amassing national Bitcoin reserves. Bhutan joins El Salvador in expanding its state-level Bitcoin stockpile, indicating a rise in government-backed Bitcoin investments.
Blockchain data indicates Bhutan’s Bitcoin holdings exceed $1 billion, primarily due to rising prices. The country began accumulating Bitcoin through mining in 2021 and has intensified efforts recently. This growth aligns with Bitcoin reaching record highs, enhancing the value of Bhutan’s existing holdings rather than significantly increasing the quantity owned.
Two weeks ago, Bhutan moved approximately 900 BTC, valued at around $65 million, to Binance. While such transfers often suggest potential sell-offs—similar to recent actions in Germany—Bhutan has maintained its mining activity and has not sold its holdings. This transfer appears to be for financial positioning rather than a reduction of its stockpile.
Bhutan’s strategy reflects a broader trend among national Bitcoin holders. El Salvador has committed to retaining its substantial Bitcoin holdings regardless of price fluctuations. In the U.S., Donald Trump has proposed creating a national Bitcoin reserve if elected, increasing interest in government-held digital assets. This proposal suggests growing confidence in Bitcoin as a state asset, a view shared by other countries but criticized by Bitcoin skeptic Peter Schiff.
Schiff commented on the hypothetical impact of a U.S. Bitcoin reserve, suggesting that acquiring a million Bitcoins could significantly raise prices, prompting long-term holders to cash out. This scenario highlights the economic power large Bitcoin reserves could have on the market.
While Bhutan is smaller compared to the U.S., its role as a notable Bitcoin holder and miner supports the trend of national-level Bitcoin accumulation. Unlike El Salvador or the proposed U.S. reserve, Bhutan has not indicated plans to influence market dynamics significantly. Currently, Bhutan's strategy focuses on steadily building a Bitcoin reserve, joining a growing number of countries incorporating Bitcoin into their financial portfolios.