The Royal Government of Bhutan has transferred approximately 929 Bitcoin (BTC), valued at around $66.16 million, to the crypto exchange Binance. On-chain data service Lookonchain first reported the transaction via X.

The transfers occurred in two tranches: an initial 100 BTC (approximately $7.1 million) at 9:09 am UTC, followed by an additional 839 BTC (about $59 million) at 9:56 am UTC. This information was corroborated by the on-chain analytics platform Arkham, which has been monitoring Bhutan’s holdings since September.

Notably, this is the first time Bhutan has sent Bitcoin to a crypto exchange since depositing 381 BTC, worth $24.1 million at the time, to Kraken on July 1.

The rationale behind this substantial transfer remains undisclosed, fueling speculation within the BTC community. Large deposits to exchanges are often interpreted as precursors to a liquidation. Given Bhutan’s relatively small population of approximately 727,145, the move has prompted questions about the government’s strategic intentions.

Bhutan has been leveraging its abundant hydroelectric resources to mine Bitcoin since 2019, effectively turning green energy into Bitcoin. This initiative aligns with a broader strategy to diversify national reserves amid global economic trends. The substantial BTC reserves could potentially be utilized to fund national projects, enhance liquidity, or stabilize the local economy during financial uncertainties.

Popular X user Pledditor (@Pledditor) commented that Bhutan does not seem to have the same view on BTC as El Salvador under President Nayib Bukele. Besides its mining operations, the country has been stacking 1 BTC every day since March 16, 2023, and has never sold a single Bitcoin.

Pledditor wrote via X: “AFAIK, we’ve never gotten confirmation that Bhutan shares the same view as El Salvador on Bitcoin. It’s looking more like they just see Bitcoin as some sort of 5-10 year asset flip rather than a longer-term treasury strategy like El Salvador. They are going to regret this.”

Some analysts suggest that Bhutan could be positioning itself for a market move or securing liquidity for upcoming projects. Others speculate that the government may be capitalizing on recent market gains.

The holdings are managed by Druk Holding & Investments, Bhutan’s state investment arm. With current reserves reportedly at 12,456 BTC, valued at approximately $886 million, Bhutan ranks among the largest known nation-state holders of Bitcoin. This is particularly notable given that many countries have acquired BTC through seizures related to criminal activities, whereas Bhutan has actively mined the BTC.

In addition to Bitcoin, Bhutan transferred 228.8 Ether (ETH), worth about $600,000, to a Binance hot wallet on October 18. The nation’s remaining $1.7 million in Ether represents its only other significant crypto holding.

As of now, there has been no official statement from the Royal Government of Bhutan or Druk Holding & Investments regarding the transfers. The community is keenly awaiting further information, with some looking to Prime Minister Tshering Tobgay for potential insights into the government’s plans.

At press time, BTC traded at $71,956.

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