Bhutan Transfers $66M in Bitcoin to Binance as Price Surges Past $71,000
The Royal Government of Bhutan has moved 929 Bitcoin (BTC), valued at approximately $66 million, to cryptocurrency exchange Binance as the digital currency’s price climbed above $71,000. The transfer, executed in two transactions on October 29, marks the country’s first significant crypto movement since July, when it deposited $24 million worth of Bitcoin to Kraken.
According to Arkham Intelligence data, the government initially transferred 100 BTC ($7.1 million) at 9:09 a.m. UTC, followed by a larger transaction of 839 BTC ($59 million) at 9:56 a.m. UTC. Following these transfers, Bhutan still maintains substantial crypto holdings of approximately 12,456 BTC, valued at $886 million.
The South Asian nation stands out as the fifth-largest national Bitcoin holder globally, trailing only the United States (203,239 BTC), China (190,000 BTC), the United Kingdom (61,245 BTC), and Ukraine (46,351 BTC). However, Bhutan’s approach to acquiring Bitcoin differs significantly from its peers. While other nations primarily accumulated their holdings through criminal seizures, Bhutan built its reserves through strategic mining operations.
The country’s Bitcoin mining initiatives, managed by state investment arm Druk Holding & Investments (DHI), leverage Bhutan’s abundant hydroelectric power resources. These operations emerged as a response to economic challenges posed by the COVID-19 pandemic, which severely impacted the nation’s tourism revenue. Recent data suggests that Bhutan’s mining output has decreased from approximately 780 BTC per month in late 2023 to around 260 BTC monthly between August and October 2024, likely due to the Bitcoin halving event and increased global hashrate competition.
The timing of the transfer has sparked discussion within the cryptocurrency community, as it coincides with Bitcoin approaching its previous all-time high of $74,000 set in March. Some analysts, including crypto community member Pledditor, suggest that Bhutan’s approach differs from other nation-state Bitcoin holders like El Salvador, viewing the asset as a medium-term investment rather than a long-term treasury strategy.
Beyond Bitcoin, Bhutan’s cryptocurrency portfolio includes smaller holdings in Ethereum (656 ETH worth $1.72 million) and minimal amounts of other digital assets. The government has maintained a relatively quiet stance regarding its cryptocurrency activities, with both the Ministry of Finance and DHI providing limited public information about their digital asset operations.
As Bitcoin’s price continues to show strength amid various macroeconomic factors, including the upcoming U.S. presidential election and China’s potential $1.4 trillion debt plan, Bhutan’s latest movement of funds demonstrates how nation-states are actively managing their cryptocurrency positions in response to market conditions.
