Bhutan Deposits $23.6M in Bitcoin to Binance Amid BTC All-Time High Surge
The Royal Government of Bhutan has deposited 212.31 Bitcoin, worth approximately $23.61 million, into Binance. This latest transfer forms part of a larger Bitcoin movement totaling 350.74 BTC, valued at $38.5 million, over the past 10 days.
Bhutan’s policy on began with mining activities initiated by the sovereign wealth fund Druk Holding & Investments in 2019. The government utilizes the nation’s rich hydroelectric power resources to mine Bitcoin as a foreign exchange reserve.
The timing of these deposits coincides with Bitcoin’s new ATH of above $112,000, suggesting prudent treasury management by Bhutanese officials. Government sales of Bitcoin typically fund local projects while maintaining core reserve holdings for long-term strategic purposes.
Bhutan’s Bitcoin operations are merely a component of a bigger movement of government cryptocurrency projects. On July 7, the transferred $200,000 worth of Ethereum to Coinbase Prime following a $10 test transaction. This ETH was initially seized from Chase Senecal in October 2022.
These state transactions illustrate the growing trend of institutional trading through cryptocurrency exchanges for treasury management. Bhutan and the United States both demonstrate how state actors utilize digital assets to pursue different strategic agendas.
On-chain data shows Bhutan’s earliest traceable Bitcoin transaction occurred in February 2021, even though its mining operations began back in 2019. The government’s strategy is unique among countries in that it focuses on sustainable mining rather than purchasing through the direct market.
Bhutan is among the world’s top government Bitcoin holders, with its position secured through green energy-based mining activities. This makes the Himalayan kingdom a unique force in sovereign Bitcoin adoption.
The nation’s hydroelectric power benefits enable lucrative mining operations while promoting environmental sustainability goals. Bhutan’s approach is distinct from the rest of the nations, which have banned mining in order to lower energy usage.
Current market conditions show trading above $111,000, offering favorable conditions for governments holding digital assets to sell for profit when the need arises. The timing of the Bhutan government’s deposits suggests prudent portfolio management rather than panic selling.
The government occasionally sells off part of its Bitcoin hoard to finance infrastructure construction and social welfare schemes in the kingdom. These are, nonetheless, considered strategic sales and not a sign that Bitcoin accumulation strategies are being reversed.
Druk Holding & Investments operates Bitcoin mining centers powered by surplus hydroelectric energy from the national grid, helping optimize energy use and diversify Bhutan’s foreign reserves.