Blockchain data shows that the Bhutanese government recently transferred more than $66 million worth of Bitcoin to Binance.
Facts from blockchain analytics platform Arkham Intelligence showed that Bhutan’s government-tagged address initiated three transfers from its balance sheet within four hours.
Authorities first moved 4,683 BTC, worth $332,000, to an untagged address before transferring approximately 103 BTC (equivalent to $7.1 million) to Binance, followed by another 839 BTC (approximately $59 million).
The motivation behind these sales remains unknown. However, some market analysts suggest it could be a strategy to secure gains, as Bitcoin recently rose above $70,000 – its highest level since June.
However, the move has sparked debate within the crypto community. Some have questioned Bhutan’s decision to sell Bitcoin now, citing El Salvador as an example of a country taking a long-term approach to Bitcoin ownership.
Pledditor, a well-known member of the Bitcoin community, stated that Bhutan would “regrets” its decision to sell BTC as they do not consider it a treasury for long-term assets. He declared:
“WI never received confirmation of that Bhutan shares the same opinion as El Salvador bitcoin. It’s more like they’re just seeing Bitcoin as a kind of asset flip over five to ten years, rather than a longer-term treasury strategy like El Salvador.”
Bitcoin holdings of Bhutan
Despite these recent sales, Bhutan’s government wallet still contains approximately 12,456 BTC, worth approximately $886 million, according to Arkham Intelligence. Druk Holding & Investments, Bhutan’s state investment arm, manages these assets.
With this balance Bitcoin Treasuries facts places Bhutan as the fifth largest national Bitcoin holder, after the US, China, UK and Ukraine. The three largest Bitcoin countries in particular acquired theirs through criminal seizures.
However, Bhutan’s BTC reserves were built up thanks to its active participation in the mining sector. The South Asian country fully embraced the industry following the COVID-19 pandemic, which had a significant impact on tourism revenues.
Since then, authorities have focused on Bitcoin mining as a new source of income that will allow the country to capitalize on its energy resources while diversifying its economy.