Bhutan Sells $33.5 Million in Bitcoin Amid Market Rally, Retains Status as Largest Government Holder

The Royal Government of Bhutan recently sold 367 Bitcoin, worth about $33.5 million, through Binance. This transaction happened on Thursday morning when Bitcoin's price rose above $90,000. Since then, the price has dropped over 3% to around $87,000.

Even after this sale, Bhutan remains the largest government holder of Bitcoin. Just two weeks ago, they completed another transaction for $66 million when Bitcoin hit $70,000. In total, Bhutan has sold nearly $100 million in Bitcoin over the past month. According to Arkham data, they still hold 12,206 Bitcoin, which is nearly $1.11 billion today. Druk Holding & Investments manages these assets. It looks like the government is taking advantage of price surges, selling bits of their holdings during market rallies.

In the global landscape, Bhutan ranks fifth among government Bitcoin holders. They follow the United States, China, the United Kingdom, and Ukraine. Unlike many countries that acquire Bitcoin through asset seizures, Bhutan mines its Bitcoin, using its abundant hydroelectric resources.

Many governments are looking to benefit from the current market rally, just like Bhutan. For example, El Salvador is using the rise in Bitcoin prices to buy back its national debt. In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. Since then, their Bitcoin reserve has grown to over $515 million. Recently, they even raised $1.6 billion to build the first Bitcoin City.

This year, Bitcoin is moving closer to mainstream adoption. The approval of Bitcoin ETFs in January sparked significant retail investment in the cryptocurrency. Plus, there’s been a notable regulatory shift in the U.S. following Donald Trump’s re-election.

Earlier today, U.S. Republican Senator Lummis proposed a bill to sell the Federal Reserve’s gold to buy 1 million Bitcoin. This move aims to boost the government’s Bitcoin reserves. Additionally, Pennsylvania introduced a bill to allocate 10% of state funds for purchasing Bitcoin. They see Bitcoin as a way to hedge against inflation and diversify their investments.