The Government of Bhutan transferred over $66 million worth of Bitcoin (BTC) to a Binance deposit wallet, sparking rumours that it might be selling part of its holdings. The Kingdom of Bhutan is believed to hold over 13,000 BTC valued at over $900 million at current market prices.
Bhutan, the government with the fourth largest Bitcoin reserves, moved nearly 1,000 BTC into a deposit address on Binance earlier this week.
Bhutan Moves Chunk of BTC Reserve to Binance
The Kingdom of Bhutan made waves earlier this week after transferring nearly 1,000 BTC to a Binance deposit wallet, suggesting it intends to sell part of its holdings. Arkham Intelligence identified the transfer in two separate transactions. Bhutan, which holds over 13,000 BTC, began transferring BTC after it broke through the $70,000 level.
The tiny Asian nation, with a GDP of only $3 billion, amassed its BTC, worth nearly $900 million at current market value, entirely through Bitcoin mining facilities, which utilize the country’s renewable energy sources.
Blockchain data analytics firm Arkham Intelligence identified wallets belonging to Bhutan earlier this year. Bhutan’s reserves surpass those of countries like El Salvador, which only holds 5,875 BTC.
Key Player in Bhutan’s Economy
Bitcoin mining plays a significant role in the country’s economy as its BTC holding represents nearly 30% of its GDP. Bhutan’s reserves were accumulated entirely through mining operations controlled by the state-owned Druk Holdings. Druk Holdings partnered with Bitdeer Technologies Group in 2023 to develop 100% carbon-free mining operations in the country. Bitdeer, a Singapore-based mining giant, has played a major role in the country’s BTC mining industry, raising over $500 million to establish crypto mining operations in Bhutan. In April 2024, Bitdeer announced plans to expand the country’s mining capacity to 600 megawatts by 2025.
Crypto Involvement Driven by Economic Necessity
Bhutan’s decision to enter the crypto space was driven by economic necessity. Years of declining tourism coupled with the fallout of the COVID-19 pandemic forced the country to investigate additional income sources. Bitcoin mining offered Bhutan a way to monetize its abundant hydroelectric resources and secure potentially new sources of income.
Bhutan’s interest in the crypto space extends beyond holding and mining assets. The country’s central bank, the Royal Monetary Authority (RMA), said it explored the possibility of partnering with Ripple to create a CBDC. The RMA explained that it would leverage Ripple’s sustainable blockchain technology to increase financial inclusion among citizens and boost cashless payments.
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