The Royal Government of Bhutan’s Bitcoin Strategy
The Royal Government of Bhutan continues its streak of selling Bitcoin (BTC), moving more assets to external exchanges. After years of accumulation through mining operations, Druk Holdings’ known wallets are once again active.
Recent Transactions
The latest transaction involved 100 BTC sent to an unknown CoinJoin address. Prior to this, the state’s wallets transferred 406.074 BTC to QCP Capital, a frequent counterparty. Valued around $40 million, these sales follow smaller tranches sent to Binance. Current wallet transfers might not be direct sales, as they could be linked to further BTC investments.
Market Context
This move comes as BTC miners are also selling off their holdings, capitalizing on prices nearing $100,000 per coin. Miner reserves have decreased to 1.89 million coins from a recent 1.91 million. Miners have been selling for the past six months, accelerating deposits after BTC’s Q4 rally.
Bhutan’s Selling Strategy
The Royal Government of Bhutan uses QCP Capital or Binance for selling its mined coins. QCP Capital offers tailored solutions for trading BTC, including OTC selling for large orders. The latest sale occurred as BTC slid to $98,469.80, a price above even the highest production fees for new BTC. Direct selling at this price range could lead to slippage or panic, prompting Bhutan to opt for personalized solutions.
Current Holdings
Despite recent sales, Bhutan still holds over $1.153 billion in BTC, close to its all-time high. The last transfers from Foundry Digital and Antpool were three months ago, with no recent daily mining inflows. Other wallets received mining inflows a month ago, holding an additional 2,465 BTC. After the latest divestment, Bhutan retains 11,688 BTC in its main wallet, with total holdings from all known wallets potentially up to 12,200 BTC.
Strategic Importance
Bhutan’s BTC holdings are an alternative to foreign reserves, positioning the country ahead of Tesla and US Riot Platforms in terms of BTC assets. The country holds 0.05% of the entire BTC supply and ranks fifth among national holdings, though some estimates place Ukraine higher due to donations.
While Bhutan’s BTC holdings are smaller compared to some exchanges, they play a critical role in the country’s financial stability. With foreign reserves around $648 million, down from $981 million in 2021, BTC provides liquidity and investment opportunities. BTC’s appreciation has significantly boosted Bhutan’s GDP, despite some unrealized profits.
Mining Operations
Bhutan has been mining BTC since 2019, with full mining capabilities revealed last year. The country uses excess renewable hydroelectric power for its mining operations and has invested in data centers.
Comparative Context
Currently, governments lag behind corporate BTC holders, with most coins held for treasuries or ETF reserves. Talks of official state BTC reserves have not yet led to official policies, and most large government holdings stem from confiscated assets.
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The Royal Government of Bhutan Extends Its Bitcoin (BTC) Selling Streak was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.