The Royal Government of Bhutan’s Bitcoin (CRYPTO:BTC) stockpile has surpassed $1 billion, according to analysis from Arkham Intelligence.
The valuation increase is attributed to the significant price surge of Bitcoin in 2024.
Despite a recent transfer of 900 BTC, valued at approximately $65 million, to Binance, Bhutan remains committed to increasing its Bitcoin holdings through mining efforts.
Bhutan's entry into substantial Bitcoin holdings began in 2021 through mining, with the country accelerating its accumulation over the past year.
This recent milestone reflects the impact of Bitcoin's current bullish momentum rather than new acquisitions.
While the number of bitcoins in Bhutan’s possession has slightly decreased following the Binance transfer, ongoing mining could offset this change.
Bhutan’s Bitcoin activities align with a broader trend of countries acquiring and holding significant Bitcoin reserves.
This approach is similar to that of El Salvador, which has maintained its Bitcoin stockpile without selling, regardless of price movements.
In the United States, Donald Trump has pledged to establish an official Bitcoin reserve as part of his campaign promises, highlighting a shift toward state-level adoption of Bitcoin.
The prospect of national Bitcoin reserves has sparked discussions among analysts and market observers.
“If the US government actually established a Bitcoin reserve and bought 1 million Bitcoin, it might end up buying millions more. Since the US government’s purchase of 1 million Bitcoin would drive the price so high, many HODLers, then worth millions or billions, would finally begin cashing out to spend their windfalls,” commented Peter Schiff, known for his skepticism of Bitcoin, on the potential implications if the U.S. government were to buy a substantial amount.
While Schiff's scenario presents challenges, such as the difficulty of acquiring a significant portion of the finite Bitcoin supply, it underscores the market impact of large-scale state-level investments.
For Bhutan, the strategy remains focused on maintaining its position as a significant Bitcoin holder and miner, following a trend seen among other nations engaging in digital asset accumulation.
At the time of reporting, the Bitcoin price was $87,915.89.