💸The Bhutanese government transfers $40 million in Bitcoin to QCP Capital, is this a new round of selling?
On December 9, the Bhutanese government transferred 402 Bitcoins to QCP Capital, with a total value reaching $38.98 million. This action is the latest move in the Bhutanese government's active reduction of its Bitcoin reserves since October last year.
Although Bhutan is a small country, it has made significant strides in the field of cryptocurrency. Their Bitcoin reserves account for nearly 27% of the country's GDP, ranking among the top in the world.
According to data from blockchain analysis platform SpotOnChain, since the surge in Bitcoin prices at the end of October, the Bhutanese government has sold 1,696 Bitcoins worth $139 million through Binance and QCP Capital, with an average selling price of $81,999 per BTC.
This is already the third large-scale transfer of Bitcoin by the Bhutanese government this year. In October, they transferred 929 Bitcoins worth $66.16 million to Binance and QCP Capital through two transactions, with an average selling price of $81,999 per BTC.
Bhutan has a total of seven known wallets holding approximately 11,700 Bitcoins, with a total value of $1.13 billion, making it the fourth-largest government holder of Bitcoin in the world. These Bitcoins are managed by the national investment agency Druk Holding & Investments (DHI).
Unlike other countries, Bhutan's Bitcoin reserves are not obtained through criminal asset seizures, but rather they are mined using their abundant hydropower resources.
Officials confirmed that Bhutan's mining activities began in April 2019, when the price of Bitcoin was only $5,000. According to World Bank data, by 2023, Bhutan's Bitcoin reserves are expected to account for 26.9% of the country's $2.9 billion GDP.
Bhutan has also partnered with Bitdeer Technologies Group to launch a $500 million fund to promote domestic Bitcoin mining. They plan to expand their mining capacity to 500 megawatts by mid-2025, with a total capacity of 600 megawatts.
In addition to mining, Bhutan has also innovated in the digital finance sector. In 2021, they collaborated with Ripple to develop a digital version of the national currency, aimed at enhancing digital and cross-border payments and promoting financial inclusion.
What are your thoughts on Bhutan's series of actions? Leave your views and opinions in the comments section!
