Bhutan Signals Possible Bitcoin Sale and Other Countries That Hold BTC
The Kingdom of Bhutan, known for its significant Bitcoin (BTC) holdings valued over $900 million, has reportedly moved a substantial portion to exchanges, hinting at a potential sell-off. This news, reported by Arkham Intelligence, has sparked concerns about possible downward pressure on BTC prices.
According to Arkham’s data, Bhutan transferred approximately $65 million worth of BTC to Binance late Tuesday, coinciding with Bitcoin’s price surge toward a record $73,500 BTC/USDT on Gate.io. Following the transfer, BTC’s price saw a slight pullback to around $72,400 by mid-morning in London.
We investigate this possible sale and look into other countries that hold and sell significant amount of Bitcoin.
A Possible BTC Sale
As of writing, the BTC is trading at around $93,000 BTC/USDT. This mountainous, secluded nation gained attention earlier this year when it emerged as a notable BTC whale. Bhutan’s Bitcoin holdings, secured through mining operations managed by state-owned Druk Holdings, account for nearly a third of its GDP, making it the second country, after El Salvador, to officially hold Bitcoin. Druk’s mining efforts, in collaboration with Bitdeer Technologies Group, have fueled the growth of Bhutan’s mining infrastructure, targeting a capacity of 600 megawatts by 2025.
Bhutan’s foray into Bitcoin aligns with Druk Holdings’ diversification strategy, although recent activity from its wallets indicates both deposits and withdrawals to exchanges such as Kraken. When reached for comment, Druk Holdings did not provide insight into their latest moves or any potential plans to sell.
Arkham’s data reveals steady activity in Druk-linked wallets, with regular deposits from Foundry, another Bitcoin miner, and other unnamed wallets over the past few weeks. This trend mirrors broader market behavior as major BTC holders seek to secure profits, a pattern that often influences the market’s momentum toward new highs.
Profit-Taking Pressure
The possible profit-taking by Bhutan follows a broader pattern seen among major Bitcoin holders as prices approach historical highs. According to research, as more holders seek to lock in profits, the market may experience short-term resistance. Despite realized profits peaking on Oct. 8, the trend has persisted at higher-than-average levels, with Glassnode data showing that around 99.7% of the circulating BTC supply remains profitable, marking approximately $1.5 billion in profits realized by entities holding over 100 BTC.
With the current climate of profit-taking, all eyes are on Bhutan and other significant holders as their actions could influence the market trajectory toward a new all-time high.
Governments That Sell BTC
In recent years, several governments have opted to sell significant amounts of Bitcoin, often to liquidate assets seized in criminal cases or auctions. Notably, the U.S. government has been one of the most active in selling seized Bitcoin, particularly from the Silk Road case. In 2023, the U.S. Marshals Service liquidated approximately 9,861 BTC (valued at around $216 million at the time), and as recently as April 2024, they transferred an additional 30,000 BTC related to Silk Road to Coinbase, signaling further sales. These sales have collectively involved over 195,000 BTC seized from criminal enterprises, generating hundreds of millions in proceeds for the government.
Germany has also made waves with its Bitcoin sell-offs. In 2024, the German government began liquidating nearly 50,000 BTC, valued at billions of dollars, seized from the operators of a pirated movie platform called Movie2k.to. This gradual sale involved transfers to exchanges like Coinbase and Kraken and contributed to slight market dips due to the scale of transactions. This action not only showcased Germany’s approach to managing seized digital assets but also highlighted potential price impacts from large-scale government transactions.
These government sales illustrate a broader trend where authorities choose to monetize crypto assets rather than hold them as investments, often affecting market conditions as they release substantial quantities onto exchanges.
Countries That Hold BTC
Several governments worldwide currently hold significant amounts of Bitcoin, typically through confiscations from criminal activities or as part of national policy initiatives.
The United States is the largest government holder of Bitcoin, with approximately 213,297 BTC (valued around $14.82 billion). These holdings stem primarily from cryptocurrency confiscations related to criminal investigations, such as the Silk Road darknet marketplace. Recent transactions suggest the U.S. has been selling portions of its holdings but still maintains a significant reserve.
China ranks second with about 190,000 BTC, worth over $13 billion. These Bitcoin were mainly seized in connection with the PlusToken Ponzi scheme, one of the largest crypto scams in history. Despite China’s strict stance on individual cryptocurrency ownership, these state-held assets remain substantial.
The United Kingdom also holds a significant amount of Bitcoin—around 61,000 BTC—primarily obtained through financial crime investigations. Germany recently liquidated most of its holdings, approximately 46,359 BTC, which were seized from operators of a piracy website. This sale notably affected Bitcoin’s price by introducing significant sell pressure.
El Salvador is a unique case, as it actively purchases Bitcoin and was the first country to make it legal tender. Its holdings are smaller, about 5,800 BTC, but reflect a strategic move to integrate Bitcoin into its economy. Meanwhile, Ukraine has amassed Bitcoin through donations to fund defense efforts, with holdings fluctuating as funds are actively used and replenished.
These examples reflect an increasing governmental role in cryptocurrency markets, influencing prices and regulation as these assets become more integrated into global financial strategies.