The Royal Government of Bhutan has deposited 929 BTC to Binance, valued at approximately $66 million, coinciding with a significant rise in Bitcoin’s price above $70,000. This transfer raises Bhutan’s total Bitcoin holdings to 12,456 BTC, and is part of the country’s ongoing efforts in sustainable mining. Bhutan has been mining Bitcoin since 2017, utilizing its abundant hydroelectric resources, and positions itself as the fifth-largest holder of Bitcoin among nations.

The Royal Government of Bhutan has made headlines with its recent deposit of 929 BTC, totaling over $66 million, to the cryptocurrency exchange Binance. This transaction occurred shortly after Bitcoin surpassed the $70,000 mark for the first time since early June 2023, indicating a potential strategic move from the Bhutanese government. According to data from Arkham Intelligence, this transfer was executed through two separate transactions on October 29, 2023, bringing Bhutan’s total Bitcoin holdings to approximately 12,456 BTC, valued at nearly $891 million. The reasons behind this transfer remain speculative; however, typically, such deposits to exchanges are viewed as precursors to selling assets, particularly as Bitcoin experienced a significant surge of over 5% recently, peaking at $73,000 within hours of the transaction. This marks a notable return to cryptocurrency exchange activity for Bhutan, which last transferred Bitcoin in July, when it deposited 381 BTC to Kraken. Furthermore, the Bhutanese government-linked wallet had also moved 228.8 ETH to Binance just ten days prior, resulting in a remaining Ether holding of approximately $1.72 million. Bhutan’s relationship with Bitcoin is unique, as the nation has been engaged in Bitcoin mining since 2017, initially adopting the practice when Bitcoin’s price was around $5,000. This initiative leverages the country’s abundant hydroelectric resources, enabling a sustainable approach to cryptocurrency mining. The government established a partnership with Bitdeer, a Nasdaq-listed mining firm, in May 2023, intending to create a fully carbon-neutral Bitcoin mining operation. Due to these endeavors, Bhutan has emerged as the fifth-largest state holder of Bitcoin, following the United States, China, the UK, and Ukraine, as per data from Bitcoin Treasuries, with the assets managed by Druk Holding & Investments, Bhutan’s state investment arm. Additionally, Bhutan’s foray into Bitcoin mining has been partly motivated by the need to diversify its revenue streams, especially given the decline in tourism during the COVID-19 pandemic. Reports from local media indicate that the income from these mining operations has even facilitated a 50% salary increase for certain government officials.

Bhutan has positioned itself as a pioneering player in the cryptocurrency mining space, riding the wave of Bitcoin’s popularity while utilizing its vast hydroelectric potential. The nation began mining Bitcoin in 2017, at a time when the cryptocurrency was relatively undervalued. Unlike many countries that acquire Bitcoin via illegal means, Bhutan’s approach has been legitimate and innovative. The collaboration with Bitdeer underscores Bhutan’s commitment to sustainable practices within the cryptocurrency sector, aligning with global shifts towards environmentally conscious mining. This strategy not only aims to bolster the nation’s economy in the face of tourism declines but also enhances its standing in the global cryptocurrency landscape.

In summary, Bhutan’s recent transfer of 929 BTC to Binance amidst a Bitcoin price surge exemplifies the country’s proactive stance in cryptocurrency. With a total Bitcoin reserve of 12,456 BTC, Bhutan strategically leverages its mining capabilities to enhance its economic resilience. The government’s focus on sustainable mining operations, along with its increasing participation in the crypto market, positions Bhutan as a notable entity in the cryptocurrency domain, further solidified by its partnership with Bitdeer. As Bitcoin continues to gain traction, Bhutan’s actions will be closely monitored by both the cryptocurrency community and financial analysts alike.

Original Source: cryptopotato.com

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