Bhutan Transfers 929 Bitcoin Worth $66 Million to Binance
The Royal Government of Bhutan transferred 929 Bitcoin (BTC), valued at approximately $66.16 million, to the crypto exchange Binance. This transfer occurred in two parts: 100 BTC ($7.1 million) at 9:09 am UTC and 839 BTC ($59 million) at 9:56 am UTC. This is the first transfer to an exchange since depositing 381 BTC (worth $24.1 million) to Kraken in July, as noted by Arkham, which has monitored Bhutan's crypto holdings since September.
The reason for this transfer is unclear, leading to speculation that it may indicate potential sales. Bhutan, with a population of around 727,145, has been mining Bitcoin using its extensive hydroelectric resources since 2019, aiming to convert green energy into digital assets and diversify national reserves amid changing global economic conditions. The substantial BTC reserves could be utilized for funding national projects, enhancing liquidity, or stabilizing the economy during financial difficulties. A popular user on X, Pledditor, observed that Bhutan’s strategy appears distinct from El Salvador’s approach under President Nayib Bukele, who considers Bitcoin a long-term treasury asset.
Pledditor stated, “As far as I know, we’ve never heard Bhutan align with El Salvador’s stance on Bitcoin. It seems more like they’re treating Bitcoin as a short-term investment than a treasury asset.” Analysts suggest Bhutan might be preparing for a market shift or seeking liquidity for upcoming projects, while others believe the government is capitalizing on recent market gains.
The Druk Holding & Investments, Bhutan's state investment entity, manages these crypto assets. Bhutan's current reserves include 12,456 BTC, valued at around $886 million, positioning it among the largest national Bitcoin holders. Unlike many countries that obtained BTC through criminal seizures, Bhutan actively mines its holdings.
In addition to Bitcoin, Bhutan also transferred 228.8 Ether (ETH), worth roughly $600,000, to a Binance wallet on October 18. The nation’s remaining $1.7 million in Ether constitutes its only other significant crypto holding.
No official comments have been made by Bhutan’s government or Druk Holding & Investments regarding these transfers. The crypto community is anticipating further information, with expectations that Prime Minister Tshering Tobgay may provide insights on future plans.