Bhutan, a Himalayan nation with fewer than 1 million people, has triggered speculation after moving $66 million worth of its Bitcoin stash to crypto exchange Binance. The unannounced string of transactions has intensified rumors that Bhutan may be looking to offload a chunk of its holdings as the price of Bitcoin goes up.
Bhutan Deposits BTC To Binance
As Bitcoin tapped the $71,000 level for the first time since June, the Royal Government of Bhutan moved roughly 929 BTC to a Binance deposit address.
According to popular blockchain sleuth Arkham Intelligence, the Bhutan government-labeled wallet first transferred 100 BTC ($7.1 million) to the digital asset exchange on Oct. 29 at 9:09 a.m. UTC, followed by another 839 BTC (worth $59 million) at 9:56 a.m.
The transfer marked the first time the government moved BTC to a centralized crypto exchange since depositing a tranche of 381 BTC, valued at $25 million, to Kraken on July 1 — where it was likely sold.
The reason for the latest transfer remains unknown, although such deposits to exchanges often precede selling. Nonetheless, Bhutan still holds 12,456 BTC, worth approximately $908 million, which could create additional selling pressure for the premier crypto.
The government’s BTC cache is held in the custody of the state-owned investment wing, Druk Holding and Investments (DHI). Bhutan is now the fifth-largest known nation-state Bitcoin holder, behind the United States, which has 203,239 BTC, China, which has 190,000 BTC, the UK, which has 61,245 BTC, and Ukraine, which has 46,351 BTC.
Unlike other governments, Bhutan’s Bitcoin does not come from law enforcement asset seizure but from mining operations. Bitcoin mining has become an integral part of Bhutan’s economy, with its BTC reserves accounting for more than $25% of its gross domestic product (GDP) last year, as per data collected by the World Bank. The country capitalizes on its plentiful hydroelectric power to sustain its green-powered mining activities.
Bhutan’s Bitcoin wealth places the Himalayan kingdom ahead of even El Salvador, which holds roughly 5,876 BTC (worth $331 million) and has raked in over $30 million in profits since making BTC legal tender, alongside the U.S. dollar in 2021.
Notably, Druk Holding and Investments also holds 656.013 Ether (ETH), along with smaller amounts of BNB, Polygon’s POL (MATIC), Tether’s stablecoin USDT, and other crypto assets.
