Key Points
- Bhutan recently sold $33 million in Bitcoin, part of $100 million sold this month.
- The government still holds 12,206 BTC, valued at $1.1 billion.
- Bhutan ranks fifth in government Bitcoin holdings globally.
- Unique for mining BTC, Bhutan utilizes its hydroelectric resources.
The latest Bhutan Bitcoin sale has attracted significant attention as the Royal Government of Bhutan sold 367 Bitcoin, valued at around $33.5 million. The sale took place on Thursday when Bitcoin’s price briefly topped $90,000 before dropping over 3% to $87,000.
This transaction follows Bhutan’s earlier sale of $66 million in Bitcoin just weeks prior. Altogether, the government has liquidated nearly $100 million worth of BTC in November, seemingly taking advantage of Bitcoin’s recent price rally.
This move highlights Bhutan’s distinctive approach to building and utilizing its Bitcoin reserves. Managed by Druk Holding & Investments (DHI), Bhutan’s 12,206 BTC holding is valued at roughly $1.1 billion, making Bhutan the fifth-largest government holder of Bitcoin.
Unlike most countries, Bhutan acquires Bitcoin through mining powered by its hydroelectric resources, setting it apart as a renewable-energy-based Bitcoin holder.
DAMN!!! 🤯
THE BHUTAN GOVERNMENT TRANSFERRED $33.51M WORTH OF #BITCOIN TO BINANCE!!!
THIS WEEK HAS BEEN CRAZY 🔥🔥🔥 pic.twitter.com/ZZWTiOlUdY
— Kyle Chassé / DD🐸 (@kyle_chasse) November 14, 2024
Bhutan’s Bitcoin Holdings and Strategic Moves
With 12,206 BTC still in its reserves, Bhutan remains a formidable player in the world of government Bitcoin holdings. Valued at over $1.1 billion, Bhutan’s Bitcoin reserve is currently managed by Druk Holding & Investments (DHI), the sovereign investment arm.
The recent Bhutan Bitcoin sale seems to align with a strategy of selling during market peaks, enabling the country to benefit from bullish trends.
Interestingly, Bhutan’s BTC acquisition strategy differs from many other nations. Rather than obtaining Bitcoin through seizures or direct market purchases, Bhutan mines its Bitcoin using abundant hydroelectric resources.
This approach not only provides a renewable energy source but also gives Bhutan an edge in Bitcoin acquisition costs, helping it avoid market volatility.
Bhutan ranks as the fifth-largest government Bitcoin holder, following the United States, China, the United Kingdom, and Ukraine. While these countries often acquire Bitcoin through asset forfeiture or strategic purchases, Bhutan’s mining strategy offers a lower-cost, energy-efficient method of building reserves.
Growing Trend of Government Bitcoin Holdings Worldwide
Bhutan’s actions come as several governments globally are taking advantage of Bitcoin’s recent rally. El Salvador, the first country to adopt Bitcoin as legal tender in 2021, has grown its holdings significantly, with its BTC reserve now valued at over $515 million.
Recently, El Salvador raised $1.6 billion in funding to build Bitcoin City, a landmark project aiming to promote Bitcoin-based economic development.
In the United States, Bitcoin interest has grown at both federal and state levels. Today, U.S. Senator Cynthia Lummis proposed a bill for the Federal Reserve to reduce its gold holdings in favor of Bitcoin, suggesting a potential purchase of 1 million BTC.
Meanwhile, Pennsylvania is considering a 10% allocation of state funds into Bitcoin, viewing it as a hedge against inflation and a diversified asset for state investments.
With major regulatory changes in the U.S., Bitcoin adoption among governments continues to gather steam. The approval of Bitcoin ETFs in January 2024 drove strong retail investment in Bitcoin, reinforcing its mainstream status.
Additionally, regulatory shifts under Donald Trump’s administration are expected to further shape cryptocurrency policies in the near term.
As Bhutan and other governments pursue Bitcoin in various ways, from direct purchases to mining, BTC is cementing its role as a versatile, strategic asset in national reserves.
Bhutan’s hydroelectric-driven mining, combined with timely sales during rallies, highlights the innovative approaches some countries are using to maximize the benefits of their crypto holdings.
