Bhutan Government Transfers 929 BTC to Binance Amid Price Surge

The Royal Government of Bhutan has made headlines by transferring 929 BTC to the cryptocurrency exchange Binance. This transaction occurred shortly after Bitcoin surpassed the $70,000 mark for the first time since June 10.

Details of the Transaction

According to Lookonchain, which cited data from Arkham Intelligence, the Bhutan-linked wallet executed two transactions on October 29, amounting to approximately $66.16 million. Currently, Bhutan holds a total of 12,456 BTC, valued at nearly $891 million. The reasons for this transfer remain speculative, as deposits to exchanges typically indicate intentions to sell assets, especially following a recent Bitcoin surge of over 5%.

Historical Context of Transfers

This marks the first instance of Bhutan sending Bitcoin to a crypto exchange since depositing 381 BTC to Kraken in July. Additionally, the same wallet transferred 228.8 ETH, worth around $600,000, to a Binance hot wallet recently, leaving $1.72 million in Ether as its primary cryptocurrency holding.

Bhutan's Bitcoin Mining Efforts

Unlike many nations that acquire Bitcoin through seizures, Bhutan has been actively mining the cryptocurrency since 2017, leveraging its abundant hydroelectric resources for sustainable practices. The government has partnered with Bitdeer, a Nasdaq-listed mining company, to establish a 100% carbon-free Bitcoin mining operation.

As a result, Bhutan has emerged as the fifth-largest nation-state holder of BTC, trailing only the United States, China, the UK, and Ukraine. The assets are managed by Bhutan's state investment arm, Druk Holding & Investments.

Economic Impact of Bitcoin Mining

Bhutan's foray into Bitcoin mining has provided a new revenue stream, particularly in response to declining tourism revenues during the COVID-19 pandemic. Reports indicate that funds generated from Bitcoin mining have contributed to a 50% salary increase for certain government officials, showcasing the economic benefits of this initiative.