Did Bhutan just sell 935 bitcoins from its Bitdeer mining partnership?

Earlier today, Bitdeer’s mining partnership in Bhutan deposited 935 bitcoins worth around $66 million into an account on Binance. Reactions indicated that some people interpreted the move as preparations to sell the coins.

According to Arkham Intelligence, the coins were moved in two separate transactions of $59.2 million and $7.3 million on Tuesday morning shortly after the world’s leading cryptocurrency crept above the $70,000 threshold.

Since 2019, Jihan Wu’s mining giant Bitdeer and its partnership with Druk Holding & Investments, a sovereign wealth manager for Bhutan, has been steadily growing its bitcoin mining operations. The partners have, according to Arkham Intelligence, amassed a trove of 12,456 bitcoins worth somewhere in the region of $890 million.

For context, boldly pro-bitcoin El Salvador has amassed fewer than 6,000 bitcoins as of last month.

Bitdeer has quietly made bitcoin an increasingly important role in Bhutan’s economy since Druk first started acquiring the currency via its partnership. Although Bitdeer provided considerable financing for the project, initial cost basis estimates on Arkham display near $5,000 per coin.

Bitcoin mining is more difficult than ever

Read more: Bitcoin lobbying group warns UK not to sell its 61,000 bitcoins

The country allegedly made the move into bitcoin mining in the face of falling tourism revenues — caused largely by the COVID-19 pandemic. More importantly, Bitdeer realized that the poor country’s abundant hydroelectric resources would power significant mining operations while maintaining its veneer of environmental sustainability.

Indeed, Bitdeer has become such a significant part of Bhutan’s economy that, according to local outlet The Bhutanese, the country used bitcoin to fund a 50% salary increase for certain government officials.

As reported by Forbes, the country took the $72 million decision during an economic crisis that saw the its foreign currency reserves fall to just $689 million — only just enough to cover 14 months of imports.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

Comments

Post a Comment

Popular posts from this blog

Manta Network battles DDoS attack after TGE as new Telegram bot steals the show

Manta Network battles DDoS post-MANTA launch; 135M RPC requests flood, causing delays. Bitbot revolutionizes retail trading on Telegram with non-custodial, AI-backed solutions. BITBOT token presale unfolds across 15 stages, offering investors a structured opportunity. In a whirlwind of recent events, Manta Network faced a DDoS attack right after the successful launch of its MANTA token, causing a stir in the crypto community. Meanwhile, Bitbot, a Telegram trading bot, is making waves by empowering retail investors. Jin us as we delve into the challenges Manta Network is facing and explore Bitbot’s mission to put institutional-grade tools in the hands of individual investors. Manta Network DDoS attack Manta Network, a modular blockchain protocol renowned for its focus on zero-knowledge (ZK) application development, encountered a significant setback shortly after the launch of its governance token, $MANTA. The network experienced a Distributed Denial o...
Read more

DOGE price prediction as expert forecasts target above $0.10

Image
With the previous week bringing gains for the cryptocurrency market, some digital assets displayed promising signals that might indicate their future movement. Dogecoin (DOGE) is one of those. The TD Sequential has recently generated a buy signal on the 3-day chart for Dogecoin. The probability of a resurgence to $0.100 or beyond appears favorable, contingent upon the sustained stability of the $0.074 support cluster, per a post on X by crypto analyst Ali Martinez on January 14. TD sequential for Dogecoin on a 3-day price chart. Source: Ali Martinez The TD sequential is a robust tool crafted to pinpoint the precise moment of trend fatigue and subsequent price reversal. As a counter-trend instrument, it addresses the limitations observed in various technical Analysis indicators that prove profitable in trending markets but exhibit suboptimal performance in sideways or ranging markets. Another technical indicator is not so optimistic Many technical indicators should be employed t...
Read more

IRS, Treasury temporarily waive business crypto reporting requirements

IRS and Treasury say businesses do not have to report cryptocurrency receipts until new regulations are issued. In a press release on Jan. 16, the Internal Revenue Service (IRS) said in a joint statement with the U.S. Treasury Department that American business es do not have to report their receipts in crypto currencies the same way they do with cash. However, the regulators noted the exception will only last “until Treasury and IRS issue regulations.” “Treasury and the IRS intend to issue proposed regulations to provide additional information and procedures for reporting the receipt of digital assets, giving the public an opportunity to comment both in writing and, if requested, at a public hearing.” The IRS The announcement does not impact the rules in place before the Infrastructure Investment and Jobs Act for reporting cash received in the course of a trade or business, the IRS said, adding that cash transactions over $10,000 received in a trade or bu...
Read more