- Bhutan moves 100 BTC, worth $8 million, to QCP Capital.
- The move signals the government’s active engagement with crypto.
- The IMF warns against crypto risks while the country is poised to see significant economic growth this year.
The Royal Government of Bhutan has once again caught the crypto industry’s attention with its significant Bitcoin transfer. The latest reports stated that the country moved about 100 BTC, worth more than $8 million, to QCP Capital.
This move adds to Bhutan’s growing list of on-chain crypto transactions involving its state-held assets. It also signals that the country is actively managing its Bitcoin holdings, with expectations that more movements could follow.
Bhutan’s latest Bitcoin transfer also underscores that governments across the world are largely engaging with cryptocurrencies, diversifying their broader financial strategies.
Bhutan’s Bitcoin Move Sparks Attention
According to the latest findings of Onchain Lens, the Royal Government of Bhutan has transferred 100.82 BTC, valued at $8.31 million, to the crypto trading platform QP Capital. This move indicates that Bhutan is not just holding Bitcoin, but is actively managing and using its crypto assets.
Such a move often suggests preparation for trading, liquidity management, or portfolio rebalancing. While the latest move follows the Bhutan’s multiple Bitcoin moves, experts believe that more transactions are likely to follow.
Currently, Bhutan is the 7th largest country holding Bitcoin. It boasts a total of 5,985, worth $495 million. While the US holds the largest amount of BTC among countries, China and the UK follow suit. The US currently holds 328,372, whereas China and the UK have 190,000 and 61,245 coins, respectively, in their reserves.
How Bhutan Built Its Bitcoin Holdings?
Significantly, Bhutan’s Bitcoin connection could be traced back to April 2019, when BTC was trading around $5,000. The country’s sovereign investment arm, Druk Holding & Investments, later confirmed that it had entered Bitcoin mining during this period. This laid the foundation of Bhutan’s crypto holdings.
The kingdom used its natural advantage, abundant hydropower, to help mine Bitcoin. Fueled by Himalayan rivers and glaciers, the country has massive untapped hydroelectric potential, allowing it to run large-scale BTC mining operations. This approach lets Bhutan mine BTC without compromising its strong environmental commitments.
In addition, Bhutan’s approach to crypto was also driven by economic necessity. As tourism declined, especially during the COVID-19 pandemic, the government looked for new ways to generate income. Thus, the country saw Bitcoin mining as an effective and productive solution.
Aditya Gowdara Shivamurthy, an associate research fellow at the Observer Research Foundation, posited that BTC mining is “one of the best options available” for the country. He added that crypto profits could be used to cover salary increases for public servants.
IMF Flags Crypto Risks Amid Economic Growth
Bhutan’s latest BTC movement comes following the IMF’s warning against the potential risks of crypto. While the IMF remains optimistic about the country’s economic growth, the organization sees exposure to crypto as a potential threat. The IMF expects Bhutan’s economy to grow 7.4% in FY2025/2026, supported by hydropower exports, tourism recovery, and public investments. But the fund cautioned that the prevailing volatility of the crypto market could pose significant challenges to the country’s financial stability.
The IMF also added that Bhutan’s growing engagement with crypto poses a new layer of financial risk. If the country fails to manage it thoughtfully, it may cause irreversible losses to the fund. They also underscored the necessity of strong fiscal and monetary policies to avoid potential losses.
