Bhutan Transfers $66.55M in Bitcoin to Binance Amid $72K Bull Run

The Royal Government of Bhutan sold $66.55 million in Bitcoin (BTC) to Binance on Tuesday morning, marking its first such transfer in four months. 

Analytics platform Arkham Intelligence wrote on X that the Himalayan kingdom now holds $889.36 million in Bitcoin, even as recent challenges affect its national mining operations. In fact, Arkham data shows that Bhutan ranks fourth internationally among government BTC holders.

Bhutan’s Bitcoin mining is managed by Druk Holdings and Investments (DHI), Bhutan’s national investment arm, which has invested heavily in Bitcoin as part of its diversification strategy.

Throughout 2023, Bhutan mining operations produced roughly 780 BTC per month, averaging 26 BTC per day. However, in the past three months, production reportedly dropped to approximately 260 BTC per month, or just 8.6 BTC per day.

While the exact cause of this slowdown remain speculative, the Arkham report points to two primary factors: the recent Bitcoin “halving” event, which reduced mining rewards, and a substantial rise in the global Bitcoin hashrate, which increased competition and reduced the potential output for smaller miners. Additionally, an undiagnosed issue with Bhutan’s mining rigs is also assumed to have contributed to the drop, although specific details have yet to be disclosed.

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Despite the challenges, Bhutan’s mining facilities remain operational. Recently, the nation’s on-chain data showed $600,000 in Bitcoin mining rewards — indicating the nation’s mining activity is still active. Geolocation data also confirmed that the mines continue to operate, although current production rates suggest a far lower yield than in 2023.

Observers React to BTC Activity in Bhutan

Many market observers on social media applauded Bhutan’s direction. Mario Nawfal’s Roundtable (@RoundtableSpace) wrote on X that the Bhutan government holding $886 million in BTC could likely shake things up, especially if they decide to “let loose more of that mined crypto.” The account went on to say that things are about to “get wild.”

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Meanwhile, social media influencer Jayanth Ukwaththa (@JUkwaththa) pointed out that Bhutan has started selling portions of its Bitcoin holdings as prices hit above $70,000. The country’s Bitcoin wallet, valued at approximately $886 million, has accumulated Bitcoin over five years through both mining and strategic holdings. He said that this recent sale could add selling pressure to the current market as Bhutan adjusts its investment approach amid record-high prices. 

Bhutan’s Bitcoin holdings have already reached $750 million, equating to around 27.9% of the country’s estimated 2023 GDP of $2.686 billion.

Read More

• Bhutan Ranks as Fourth-Largest Bitcoin Holder Among Sovereign Nations
• Bhutan to Triple Its Bitcoin Mining Capacity Amid Upcoming Halving
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GAIRIKA

Gairika is a cryptocurrency journalist with a focus on Bitcoin and blockchain technology.

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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