Bhutan’s Government-Linked Wallet Transfers 929 BTC to Binance Amid Bitcoin Price Surge
The Royal Government of Bhutan has recently deposited 929 BTC, worth approximately $66.16 million, into the cryptocurrency exchange Binance. This significant transfer was flagged shortly after Bitcoin climbed above $70,000 for the first time since June 10. According to data from Arkham Intelligence, the Bhutan government-linked wallet completed the transaction through two separate transfers on October 29. Currently, Bhutan holds 12,456 BTC, valued at nearly $891 million. While the motives behind the transfer remain unclear, deposits to crypto exchanges are typically associated with plans to sell assets, especially given Bitcoin’s recent surge of over 5% within the past day, reaching above $71,700 and topping $73,000 for the first time since the all-time high period in March.
This move marks the first time Bhutan has sent Bitcoin to a crypto exchange since depositing 381 BTC to Kraken in July. Additionally, nearly ten days ago, the country-linked wallet transferred 228.8 ETH, worth around $600,000, to a Binance hot wallet, leaving $1.72 million in Ether as its only other significant cryptocurrency holding.
Bhutan’s Bitcoin Reserves
Unlike many countries that acquire Bitcoin through criminal seizures, Bhutan has been actively mining the cryptocurrency since 2017 when it was worth around $5,000. The landlocked country, situated in the Eastern Himalayas, has utilized its abundant hydroelectric resources for sustainable mining practices. In May 2023, the Bhutanese government partnered with the Nasdaq-listed mining company Bitdeer to develop a 100% carbon-free Bitcoin mining operation in the country.
As a result of these efforts, Bhutan is now the fifth-largest known nation-state holder of BTC, trailing only the United States, China, the UK, and Ukraine, according to data compiled by Bitcoin Treasuries. The assets are held by Bhutan’s state investment arm, Druk Holding & Investments. Bhutan ventured into Bitcoin mining as a new revenue stream in response to plummeting tourism revenues driven by the COVID-19 pandemic. According to local media outlet ‘The Bhutanese,’ the funds generated from Bitcoin mining helped finance a 50% salary increase for some government officials.
