Bhutan’s Bitcoin Reserves Top $1 Billion

The government of Bhutan now holds over $1 billion in Bitcoin (BTC), fueled by the cryptocurrency's surge in value this year, according to new analysis from Arkham Intelligence. While the country recently transferred $65 million worth of Bitcoin to Binance, it continues to mine more, following the trend of countries building national Bitcoin reserves. Bhutan joins El Salvador in growing its state-level Bitcoin stockpile, highlighting a rise in government-backed Bitcoin investments.

Blockchain data from Arkham Intelligence reveals that Bhutan’s Bitcoin holdings have surpassed $1 billion, mainly due to the rising Bitcoin price. Bhutan began accumulating Bitcoin through mining in 2021 and has accelerated its efforts over the past year. This growth coincides with Bitcoin reaching record highs, enhancing the value of Bhutan’s existing stock rather than signaling a significant increase in the number of Bitcoins held.

Two weeks ago, Bhutan moved around 900 BTC, worth approximately $65 million, to Binance. Although such a transfer often indicates a potential sell-off—similar to recent asset sales in Germany—Bhutan has maintained its mining pace and hasn’t sold off its holdings. Instead, it seems that this transfer may have been for financial positioning rather than a reduction in its stockpile.

Bhutan’s approach reflects a broader trend of national Bitcoin holders. El Salvador, for example, has committed to retaining its substantial Bitcoin holdings regardless of price. In the U.S., Donald Trump has pledged to create a national Bitcoin reserve if elected, amplifying interest in government-held digital assets. This commitment suggests a growing confidence in Bitcoin as a state asset, a stance echoed by other countries but criticized by well-known Bitcoin skeptic Peter Schiff.

Schiff recently commented on the potential impact of a hypothetical U.S. Bitcoin reserve, suggesting that if the U.S. were to acquire a million Bitcoins, it could drive up prices so much that long-term holders might finally cash out their investments. Although this scenario assumes multiple factors, it underscores the economic power large Bitcoin reserves could exert on the market.

While Bhutan is a smaller player compared to the U.S., its status as a prominent Bitcoin holder and miner contributes to the trend of national-level Bitcoin accumulation. Unlike El Salvador or the hypothetical U.S. reserve, Bhutan has not hinted at intentions to influence market dynamics significantly. For now, it appears Bhutan’s strategy aligns with quietly building a Bitcoin reserve, positioning itself alongside a growing number of countries adopting Bitcoin as part of their financial portfolios.