Bhutan Government Transfers $40 Million in Bitcoin to QCP Capital

According to blockchain analytics platform SpotOnChain, on December 9, the Royal Government of Bhutan transferred 402 Bitcoin (BTC) worth $39.56 million to QCP Capital.

This is the latest in a series of transactions by the government of Bhutan, which has been actively selling its Bitcoin reserves since October.

Previous transfers and current reservations

Data from SpotOnChain shows that the wallet has moved 1,696 BTC, valued at $139 million, since Bitcoin’s price spike in late October. These sales, conducted through Binance and QCP Capital, were made at an average price of $81,999 per BTC.

Although the government has not disclosed the reasons for these transactions, deposits on cryptocurrency exchanges are often associated with intentions to sell.

This is the third major Bitcoin transfer by the Bhutanese government this year. In October, he sent 929 BTC, valued at $66.16 million, to Binance in two transactions. These came shortly after the cryptocurrency broke above $70,000 for the first time since June.

In early July, Arkham data revealed that the government-linked wallet deposited 381 BTC worth $24.1 million at the time into Kraken.

Bhutan holds approximately 11,700 BTC valued at $1.15 billion in seven known wallets, making it the fourth largest government Bitcoin holder globally. The coins are managed by Druk Holding & Investments (DHI), the country’s state investment arm.

Bitcoin’s role in Bhutan’s economy

Unlike many countries that acquire Bitcoin through criminal asset seizures, Bhutan has built its reserves through mining operations fueled by its abundant hydroelectric resources.

Officials recently confirmed that mining in the country began in April 2019, when the price of Bitcoin was around $5,000. The reserves have since grown to account for 26.9 percent of Bhutan’s $2.9 billion GDP by 2023, the World Bank reports.

In May 2023, DHI partnered with Bitdeer Technologies Group to launch a $500 million fund to boost Bitcoin mining in the country. In April 2024, Bhutan announced plans to expand its mining capacity by 500 megawatts by mid-2025, bringing total capacity to 600 megawatts.

In addition to its mining activities, Bhutan has explored innovations in digital finance. In 2021, the Royal Monetary Authority (RMA) partnered with Ripple to develop a digital version of its national currency.

At the time, the country’s central bank said the initiative aimed to improve digital and cross-border payments and promote financial inclusion.

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