The Royal Government of Bhutan deposited 929 BTC, worth approximately $66.16 million, into Binance amid Bitcoin’s price surge above $70,000. Bhutan now holds 12,456 BTC, making it the fifth-largest national holder. The country has been mining Bitcoin since 2017 using sustainable hydroelectric power, having partnered with Bitdeer to enhance its operations. This move follows a recent transfer of ETH to Binance and comes as part of Bhutan’s strategy to bolster its economic recovery post-pandemic.
The Royal Government of Bhutan has recently executed a notable transfer of 929 BTC to the cryptocurrency exchange, Binance, coinciding with a surge in Bitcoin prices, which surpassed $70,000 for the first occasion since June 10, 2023. Data shared by Lookonchain, based on insights from Arkham Intelligence, highlights that the Bhutanese wallet executed this transfer in two separate transactions on October 29, 2023, with the total value approximating $66.16 million at current market rates. Presently, Bhutan maintains a substantial reserve of 12,456 BTC, valued at nearly $891 million. The rationale behind this transaction remains speculative, as movements to cryptocurrency exchanges are typically indicative of intentions to liquidate holdings. This particular activity occurred against a backdrop of over a 5% daily increase in Bitcoin’s value, which further escalated to exceed $73,000 during subsequent hours, marking the highest levels attained since the Bitcoin boom in March. This transfer marks Bhutan’s first instance of sending Bitcoin to an exchange since July, when it transferred 381 BTC to Kraken. Notably, prior to this significant move, the wallet associated with the government transferred 228.8 ETH, valued at around $600,000, to a Binance hot wallet, leaving $1.72 million in Ether as its remaining noteworthy digital asset. Bhutan’s Bitcoin holdings stem from its proactive mining initiatives, which began in 2017 when the cryptocurrency was valued at approximately $5,000. The mountainous nation capitalizes on its ample hydroelectric resources to implement environmentally friendly mining practices. Moreover, the Bhutanese government has collaborated with the Nasdaq-listed mining entity, Bitdeer, since May 2023 to establish a fully carbon-neutral Bitcoin mining operation in the region. Bhutan is now recognized as the fifth-largest national holder of Bitcoin, following the United States, China, the UK, and Ukraine, as per data compiled by Bitcoin Treasuries. These assets are managed by Bhutan’s state investment entity, Druk Holding & Investments. Furthermore, Bhutan’s foray into Bitcoin mining has been a strategic maneuver to address the financial downturn experienced in the tourism sector following the COVID-19 pandemic. Reports from local media, specifically ‘The Bhutanese,’ indicated that revenues from Bitcoin mining enabled certain government officials to receive a 50% salary increment.
Bhutan, a landlocked nation in the Eastern Himalayas, has emerged as a significant player in the cryptocurrency domain through its distinctive approach to Bitcoin acquisition. Unlike several other nations that have obtained Bitcoin primarily via criminal seizures, Bhutan initiated its Bitcoin mining operations in 2017. The nation’s mining endeavors are underpinned by its reliance on abundant hydroelectric power, enabling the formulation of sustainable mining techniques. This has allowed Bhutan to accumulate a substantial Bitcoin reserve, ranking it fifth among nation-states in terms of Bitcoin holdings. The government’s collaboration with mining companies like Bitdeer not only promotes eco-friendly practices but also serves as a financial strategy to supplement the economy, particularly after the severe impacts of the COVID-19 pandemic on tourism revenues.
In summary, Bhutan’s recent transfer of 929 BTC to Binance represents a significant maneuver as Bitcoin prices reach new heights. With a current reserve of 12,456 BTC, the Bhutanese government has established itself as a formidable player in the cryptocurrency sector. The strategic mining operations initiated by the country aim to leverage its natural resources and diversify revenue sources, particularly following economic challenges faced during the pandemic. The implications of these actions are yet to be fully understood, particularly regarding future plans for these assets amidst fluctuating market conditions.
Original Source: cryptopotato.com
