Bhutan Moves $64 Million in Bitcoin as Prices Break $105,000

Bhutan, the small Himalayan kingdom celebrated for its forward-thinking approach to crypto, has captured global attention with a recent transfer of 633 Bitcoins valued at $64.57 million to three newly created blockchain wallets.

The transaction, flagged on Friday by analytics firm Lookonchain, comes amid Bitcoin’s climb past $105,000, sparking speculation about a potential sale.

At press time, the Royal Government of Bhutan held 11,055 BTC, valued at approximately $1.13 billion, with the transferred BTC still sitting in the receiving addresses.

Unlike most countries that acquire Bitcoin through law enforcement seizures or strategic purchases, such as El Salvador, Bhutan has built its reserves through extensive mining operations. Bhutan is the fourth-largest government Bitcoin holder globally, with its BTC holdings equivalent to 39% of the nation’s GDP.

Bhutan’s venture into the crypto world began quietly in early 2020, quietly accumulating Bitcoin before significantly scaling up operations in 2023. According to a recent report by Arkham, through its state fund, Druk Holdings, the government intensified its Bitcoin mining efforts, with facilities generating between 55 and 75 BTC weekly. Some of these facilities are housed in the repurposed Education City project. Satellite imagery has further unveiled a vast government-funded mining infrastructure, solidifying Bhutan’s reputation as a “crypto Shangri-La.”

Meanwhile, Bhutan’s crypto ambitions extend beyond Bitcoin. On January 8, Gelephu Mindfulness City, part of Bhutan’s New Special Administration Region, announced that the government is building reserves in Ethereum (ETH) and Binance Coin (BNB) alongside Bitcoin. This initiative aims to enhance the country’s economic resilience and expand its role in the global crypto economy.

Last week, Changpeng Zhao (CZ), co-founder of Binance, praised Bhutan’s decision to include BNB in its reserves, describing it as a “beautiful and smart country.” Back in November, CZ predicted that “many nations will use Bitcoin as reserves, along with other cryptocurrencies,” referencing a post highlighting Bhutan’s milestone of surpassing $1 billion in Bitcoin holdings.

That said, Bhutan’s move comes as the global landscape for government-held crypto reserves evolves. The U.S., for instance, is debating the creation of its own Strategic Bitcoin Reserve under the incoming administration of President-elect Donald Trump. This follows reports that the Department of Justice holds over 69,000 BTC, worth $7 billion, from Silk Road seizures.

This week, sources revealed that Donald Trump is considering issuing an executive order on January 20 to designate cryptocurrency as a national priority, a move that could be a transformative milestone for the industry.