The Royal Government of Bhutan recently deposited 929 BTC, valued at approximately $66.16 million, to the global cryptocurrency exchange Binance.
The government currently holds 12,456 BTC, valued at $887.46 million, as indicated by data from Arkham Intelligence.
The deposit to Binance has raised questions across the crypto community, with some wondering if Bhutan might be preparing to liquidate some of its Bitcoin holdings.
Bhutan Sends More BTC to Binance as Bitcoin Hits $71,000
Earlier today, Bhutan also sent another 102 BTC, worth more than $7 million, to Binance.
Royal Government of #Bhutan deposited 929 $BTC($66.16M) to #Binance in the past hour.
Royal Government of #Bhutan currently holds 12,456 $BTC($886.58M).https://t.co/ki4I4mfRpo pic.twitter.com/w3D7IqpJ08— Lookonchain (@lookonchain) October 29, 2024
The transactions come amid a recent spike in the price of Bitcoin.
As of now, the leading cryptocurrency is trading at $71,300, up nearly 3% in 24 hours and close to the $73,700 high reached in March this year.
In a recent note, QCP said that at $27 billion, total BTC-PERP open interest is nearing this year’s high, suggesting market anticipation is high for a breakout.
Meanwhile, the recent transactions show Binance as Bhutan’s primary exchange for both deposits and withdrawals, totaling $254.3 million.
Other exchanges used include Celsius and Kraken, but with comparatively lower transaction volumes.
The Royal Government of Bhutan is also holding some other cryptocurrencies aside from Bitcoin.
The portfolio also includes Ethereum, hilding 656.039 ETH worth around $1.72 million.
Additionally, smaller holdings include 69 million BOBO tokens, 53.569 SAND, and 23.505 MATIC, with each of these assets valued at under $100 collectively.
Minor amounts of Binance Coin (BNB), BIM, and INS tokens are also held.
Bhutan Surpasses El Salvador as a Major Bitcoin Holder
Last month, Bhutan surpassed El Salvador in terms of Bitcoin holdings, becoming the largest Bitcoin holder in South Asia.
The Bitcoin holdings are reportedly linked to the Kingdom of Bhutan’s investment arm, Druk Holdings and Investments (DHI), which has been mining Bitcoin using the country’s abundant hydroelectric power.
Arkham Intelligence was able to confirm the activity through a combination of on-chain data and satellite imagery, pinpointing mining operations at the site of Bhutan’s former Education City project.
The largest and most significant mining facility in Bhutan is positioned on the site of a failed $1 billion government project called “Education City,” Forbes reported last year.
The project aimed to establish an international center for education and knowledge but was abandoned due to scandals and mismanagement.
The Bitcoin mine on this site is concealed behind mountainous terrain but is betrayed by transformers and power lines.
Historical satellite imagery reveals that its construction began in December 2021.
The country’s government, including the Ministry of Finance, has remained tight-lipped about its cryptocurrency activities.
DHI, which also oversees Bhutan’s flagship airline, hydroelectric power plants, and a cheese factory, has not provided detailed information on revenues or investment in bitcoin mining.
Bhutan’s interest in Bitcoin mining arose as a response to the economic challenges caused by the COVID-19 pandemic.
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