Bhutan Government Transfers Additional Bitcoin Worth Millions to Binance Exchange
The Royal Government of Bhutan moved 650 Bitcoin worth $74.24 million to cryptocurrency exchange Binance over a two-week period, according to Cointelegraph. The latest transaction involved 99.47 Bitcoin valued at $12.05 million, completed through the country's investment arm Druk Holding. Blockchain analytics platform Onchain Lens tracked these movements on Monday.
The Bhutanese government wallet had remained inactive for two weeks before initiating transfers on June 30. The country's Bitcoin transfer activity coincided with the cryptocurrency reaching $120,000 for the first time. Bitcoin traded at $122,300 at the time of reporting, showing continued upward momentum.
Arkham data reveals that Bhutan currently holds 11,411 Bitcoin worth approximately $1.4 billion at current market prices. The country also maintains 656 Ether tokens valued at nearly $2 million. These recent transfers represent roughly 5.7% of Bhutan's total Bitcoin holdings.
Economic Strategy Behind Strategic Asset Management
Bhutan's Bitcoin portfolio now represents approximately 40% of the country's gross domestic product, positioning the Himalayan kingdom among the world's largest sovereign cryptocurrency holders. Al Jazeera reports that the country sold $100 million of cryptocurrency in 2023 to double civil servant salaries, helping reduce government employee resignations from 1,900 to 500 in the first quarter of 2024.
The nation leverages its abundant hydropower resources for Bitcoin mining operations, using surplus energy during summer months when glacier-fed rivers generate excess electricity. Prime Minister Tshering Tobgay explained that Bitcoin mining provides foreign currency reserves while utilizing seasonal energy surpluses. We previously covered how Bitcoin's fixed supply makes it an inflation-proof reserve asset for nations seeking monetary independence.
Bhutan's cryptocurrency initiative addresses mounting economic challenges including youth unemployment and limited arable land due to mountainous terrain. The country established mining partnerships with Singapore-based Bitdeer to expand operations, with plans to increase hydropower capacity from 3.5 gigawatts to potentially 33 gigawatts over the next decade.
Global Trend Toward National Cryptocurrency Reserves
Bhutan ranks third globally among government Bitcoin holders, trailing only the United States and China in total reserves. CCN data shows that over 527,000 Bitcoin is confirmed to be held in global government reserves, with the U.S. government holding $21.56 billion in Bitcoin as part of its Strategic Bitcoin Reserve.
The Bhutanese approach differs from other nations through its mining-focused strategy rather than purchases or seizures. El Salvador maintains 6,230 Bitcoin worth $678 million, though International Monetary Fund loan conditions require the country to end its taxpayer-funded acquisition strategy by July 2025. North Korea's state-sponsored activities have accumulated significant holdings through cyber operations.
Industry experts suggest Bhutan's model could serve as a blueprint for smaller nations entering the digital economy. CoinDesk analysis indicates that countries with abundant renewable energy resources may follow similar strategies to leverage stranded energy for cryptocurrency mining. The kingdom designated Bitcoin, Ethereum, and BNB as strategic reserve assets for its Gelephu Mindfulness City development project, demonstrating broader blockchain integration plans beyond simple reserve accumulation.
