Royal Government of Bhutan sells $66m in Bitcoin from its $900m stash
The post Royal Government of Bhutan sells $66m in Bitcoin from its $900m stash appeared on BitcoinEthereumNews.com.
The Royal Government of Bhutan has sold $66.5 million worth of Bitcoin as the crypto’s price briefly surged above the $70,000 mark. Data from Arkham Intelligence shows that Bhutan’s government wallet quietly stacked BTC over the years. The wallet transferred part of the accumulated funds in two separate transactions on October 29. These transactions moved the Bitcoin stash to a Binance deposit wallet, hinting that the nation plans to liquidate on the world’s largest crypto exchange. The government wallet still holds approximately $886 million in Bitcoin. Whales, like Bhutan, can influence Bitcoin’s price by unloading massive amounts when it hits certain price levels. Bhutan’s Bitcoin beginnings and economic strategy Bhutan entered the Bitcoin game in 2019, driven by a need to diversify revenue. Known more for its hydropower and tourism, the Asian nation took the plunge into crypto when Bitcoin was around $5,000. That initial investment aimed to counter slumping tourism revenue, which fell hard during the COVID-19 pandemic. The sector, which generates an annual income of $88.6 million, took a heavy hammering. At the center of Bhutan’s digital push stands Druk Holding & Investments (DHI), the country’s state investment arm, which led the Bitcoin mining efforts. By capitalizing on its own hydroelectric power, Bhutan launched state-backed mining operations. It is one of the few countries running its own crypto-mining initiative, a model supported by the kingdom’s hydro resources. The setup offers two things: consistent income without depleting national currency reserves and a future-facing economy model in a nation where tourism and energy production have been dominant. Mining investments and imports fuelled expansion Bhutan ramped up its mining operations throughout 2020. High-ranking officials initiated deals with Bitcoin miners and hardware suppliers to beef up capabilities. By 2021, DHI had broadened its portfolio, partnering with major crypto lenders like BlockFi and…
Filed under: News - @ October 29, 2024 1:25 pm