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 from Bhutan’s government, which has been actively selling its Bitcoin reserves since October.

Previous Transfers and Current Reserves

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

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

This marks the third major Bitcoin transfer by Bhutan’s government this year. In October, it sent 929 BTC, valued at $66.16 million, to Binance across two transactions. These occurred shortly after the cryptocurrency surpassed $70,000 for the first time since June.

Earlier in July, Arkham data revealed that the government-linked wallet deposited 381 BTC worth $24.1 million at the time to Kraken.

Bhutan holds approximately 11,700 BTC valued at $1.15 billion across 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 powered by its abundant hydroelectric resources.

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

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 the 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 nation’s central bank said the initiative aimed to enhance digital and cross-border payments and promote financial inclusion.