Bhutan recently transferred $66 million worth of Bitcoin to Binance, a move that coincides with Bitcoin’s recent rally past $71,000. Though the transaction has prompted speculation within blockchain market communities, there is no clear indication that the Bitcoin-holding state intends to liquidate its holdings.
BREAKING: BHUTAN GOVERNMENT’S $750M BTC NOW ON ARKHAM
Bhutan’s Bitcoin holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by the Kingdom of Bhutan’s investment arm, Druk Holdings.
Arkham is the first to publicly identify these… pic.twitter.com/a8ScUNJJ9F
— Arkham (@ArkhamIntel) September 16, 2024
Instead, the transfer reflects the continued management of substantial Bitcoin reserves, which now exceed $750 million—nearly 28% of the nation’s GDP, according to data from blockchain intelligence firm Arkham.
Bhutan’s Early Bet on Bitcoin Mining
Bhutan entered the crypto mining arena in 2019, leveraging the abundant hydroelectric resources provided by Himalayan-fed rivers. The sovereign investment arm, Druk Holding & Investments (DHI), spearheaded these efforts to diversify Bhutan’s income sources and reduce economic dependence on traditional sectors like tourism.
Hydropower, which makes up about 30% of the state’s GDP, allowed the nation to mine Bitcoin at low environmental and financial costs. This unique advantage enabled Bhutan to expand its crypto-mining operations rapidly as the country faced declining tourism revenues and pandemic-induced economic challenges.
A Strategic Diversification Amid Economic Challenges
Bitcoin’s role in Bhutan’s economy has steadily increased, even funding a 50% salary increase for public sector employees as recently as 2023, underscoring the asset’s fiscal significance. The government has also been discreetly expanding its crypto operations; customs data show a spike in computer chip imports, with $142 million of mining hardware entering the country in 2022 alone.
This aligns with the construction of large mining facilities, including a major site repurposing the grounds of an abandoned education project—a site that now powers the nation’s largest mining operation.
Strategic Bitcoin Move Signals Potential Shift in Crypto Policy
As one of the few nations with government involvement in Bitcoin mining, Bhutan’s recent transfer is noteworthy, especially given the potential for further transactions as the market continues to fluctuate. Market observers are watching closely to see if this movement signals a potential shift in the countries’ approach to its sizable Bitcoin assets.