Bhutan Transfers 929 Bitcoin ($63M) to Binance, Prompting Speculation About Its BTC Strategy

The Royal Government of Bhutan has transferred approximately 929 Bitcoin (BTC), valued at around $66.16 million, to the crypto exchange Binance.

Bhutan has transferred 929 Bitcoin (BTC) to crypto exchange Binance, valued at approximately $66.16 million based on current market prices. The transfers occurred in two tranches: an initial 100 BTC at 9:09 am UTC, followed by an additional 839 BTC at 9:56 am UTC, as reported by on-chain data service Lookonchain via X.

This marks the first time Bhutan has sent Bitcoin to a crypto exchange since depositing 381 BTC, valued at $24.1 million at the time, to Kraken on July 1. The on-chain analytics platform Arkham has been tracking Bhutan’s holdings since September.

Bhutan began mining Bitcoin in 2019, utilizing its abundant hydroelectric resources to convert green energy into Bitcoin. This initiative is part of a broader strategy to diversify national reserves in response to global economic trends. The substantial BTC reserves could potentially be used to fund national projects, enhance liquidity, or stabilize the local economy during periods of financial uncertainty.

However, the rationale behind this large-scale transfer remains undisclosed, sparking speculation within the BTC community. Large deposits to exchanges are often interpreted as precursors to a liquidation, especially given Bhutan’s relatively small population of approximately 727,145.

In contrast to Bhutan, El Salvador has been acquiring Bitcoin at a rapid pace under President Nayib Bukele. Besides its mining operations, the country has been stacking 1 BTC every day since March 16, 2023, and has never sold a single Bitcoin.

“AFAIK, we’ve never gotten confirmation that Bhutan shares the same view as El Salvador on Bitcoin. It’s looking more like they just see Bitcoin as some sort of 5-10 year asset flip rather than a longer-term treasury strategy like El Salvador. They are going to regret this,” Pledditor wrote via X.

Some analysts suggest that Bhutan could be preparing for a market move or obtaining liquidity for upcoming projects. Others speculate that the government may be capitalizing on recent market gains.

The holdings are managed by Druk Holding & Investments, Bhutan’s state investment arm. With current reserves reportedly at 12,456 BTC, valued at approximately $886 million, Bhutan ranks among the largest known nation-state holders of Bitcoin. This is particularly noteworthy considering that many countries have acquired BTC through seizures related to criminal activities, while Bhutan has actively mined the BTC.

In addition to Bitcoin, Bhutan also transferred 228.8 Ether (ETH), valued at approximately $600,000, to a Binance hot wallet on October 18. The nation’s remaining $1.7 million in Ether represents its only other significant crypto holding.

As of now, there has been no official statement from the Royal Government of Bhutan or Druk Holding & Investments regarding the transfers. The community is eagerly awaiting further information, with some looking to Prime Minister Tshering Tobgay for potential insights into the government’s plans.

At press time, BTC trades at $71,956.