The Kingdom of Bhutan’s Bitcoin (BTC) holdings strategy is under speculation after it transferred 365 BTC, valued at approximately $33.3 million, to a Binance deposit address on November 14. This move coincides with a period when Bitcoin is trading around its all-time high of over $90,000, according to data from Arkham, an on-chain analysis platform.

The recent transfer adds to the growing trend of Bhutan moving its crypto holdings to exchanges. In late October, the country transferred 929 BTC, worth $66.1 million, to Binance. Earlier this year, Bhutan deposited 381 BTC to Kraken on July 1. Despite these movements, Bhutan still holds a substantial Bitcoin reserve of around 12,573 BTC, valued at over $1 billion.

Historically, moving assets to exchanges often signals an intention to sell, potentially leading to short-term market volatility. “If Bhutan proceeds with a large sale, it will be intriguing to understand why it chose to offload on the open market instead of pursuing an over-the-counter transaction,” noted market analysts.

Bhutan, alongside El Salvador, remains among the few nations with a strategic Bitcoin holding plan. The government leverages its abundant hydroelectric energy for Bitcoin mining, with its holdings managed by Druk Holding & Investments, the state’s investment arm.

El Salvador, by contrast, has adopted Bitcoin as legal tender and follows a no-sell strategy, making periodic BTC acquisitions. According to Finbold, the Central American nation’s Bitcoin holdings have yielded unrealized profits exceeding $200 million since accumulation began in 2021.

Globally, countries’ Bitcoin holdings often stem from criminal seizures, with the U.S. leading due to assets seized from the Silk Road, amounting to about 208,109 BTC. China, the UK, and Ukraine also hold notable Bitcoin reserves. The shifting stance of countries, influenced by geopolitical factors like the U.S. president-elect’s pro-Bitcoin strategy, continues to impact market dynamics. At press time, Bitcoin trades at $87,810, with market fluctuations reflecting a broader wave of optimism.

Source: Kingdom of Bhutan just deposited 365 Bitcoin on Binance; Is it going to sell?