Bhutan Transfers $74 Million in Bitcoin to Binance Amid Price Surge

The government of Bhutan has recently made significant moves in the cryptocurrency market, transferring $74 million in Bitcoin to Binance during a period when the cryptocurrency's value surged to over $120,000. These transactions, conducted over the last two weeks, were managed by Druk Holding & Investments, the sovereign wealth fund of Bhutan. The transfers were tracked by blockchain analytics provider Onchain Lens, highlighting Bhutan's growing interest in digital assets.

The initial transaction on June 30th involved 137.24 BTC, valued at $14.7 million at the time. Subsequent transfers ranged from 2 to 200 BTC per transaction, with the latest transfer of 99.47 BTC, equivalent to $12.05 million, occurring just hours after Bitcoin reached its all-time high. In total, the government sent 650 BTC to Binance within this period.

Druk Holding & Investments, which manages Bhutan's crypto reserves, has accumulated a substantial position in Bitcoin through state-sponsored mining. The country leverages its hydroelectric potential to power mining operations, aligning with its strategy of sustainability and digital asset accumulation. Currently, Bhutan holds 10,485 BTC, valued at approximately $1.2 billion, which constitutes over 40% of the country's GDP. The government's strategy includes selling these holdings to platforms like Binance to gain liquidity and capitalize on favorable market conditions.

In May, Bhutan partnered with Binance to introduce crypto payments within the tourism industry, signaling a broader integration of cryptocurrencies into the country's economy. A representative from Druk Holding stated that these practices aim to effectively manage assets and contribute to Bhutan's long-term economic goals, indicating the government's long-standing interest in incorporating digital assets into national development plans.

Bhutan's actions on Binance coincide with Bitcoin's price surge to over $123,000. The transfers align with a trend of selling into price rallies, providing liquidity and funding for domestic projects. Previous instances of crypto income have been used for public sector development. The transfers, marked by Onchain Lens, underscore Bhutan's unique position as one of the few governments actively managing a large Bitcoin reserve through direct mining and controlled market interventions. This approach demonstrates how state actors can utilize digital assets for economic and infrastructural development.