The announcement of a rate cut by the U.S. Federal Open Market Committee (FOMC) is expected to lead to further increases in the price of Bitcoin. There are several factors that could contribute to this price surge.
According to blockchain analytics firm Arkham Intelligence, it has been revealed that the Bhutanese government currently holds Bitcoin worth $750 million (approximately 107 billion yen). Their holdings exceed 13,000 BTC.
BREAKING: BHUTAN GOVERNMENT’S $750M BTC NOW ON ARKHAM
— Arkham (@ArkhamIntel) September 16, 2024
Bhutan’s Bitcoin holdings are now labeled on Arkham. These holdings come from Bitcoin mining operations carried out by the Kingdom of Bhutan’s investment arm, Druk Holdings.
Arkham is the first to publicly identify these… pic.twitter.com/a8ScUNJJ9F
Research by CoinGape shows that the amount of Bitcoin held by various governments ranks the U.S. first with approximately 200,000 BTC (equivalent to 1.6 trillion yen), followed by China with approximately 190,000 BTC (equivalent to 1.5 trillion yen), and the U.K. in third with an estimated 60,000 BTC (equivalent to approximately 490 billion yen). The Kingdom of Bhutan ranks fourth in terms of holdings.
All of Bhutan’s holdings are reportedly derived from Bitcoin mining operations conducted by the country's investment arm, Druk Holding and Investments (DHI). When converted to the current value, the Bitcoin held by Bhutan is equivalent to 25% of the country’s projected GDP.
It is said that the country started its mining operations in 2019, with 99.99% of its electricity being sourced from hydropower.
As mentioned earlier, the top three countries in terms of Bitcoin holdings have accumulated their reserves through seizures from criminal groups and fraudsters by law enforcement agencies. In contrast, Bhutan can be considered one of the top countries globally in terms of the amount mined through its own mining operations.
El Salvador, known for adopting Bitcoin as legal tender, is reported to currently hold approximately 5,875 BTC, valued at $331 million. The country is said to have acquired Bitcoin at an average price of $43,900 per BTC (approximately ¥6.28 million), demonstrating considerable success in asset building.
In addition to promoting Bitcoin as legal tender, El Salvador has been advancing eco-friendly Bitcoin mining since 2021, having introduced 300 new processors that utilize volcanic geothermal energy.
Similarly, Bhutan has entered the Bitcoin mining sector by leveraging its abundant hydropower resources. Both countries are focusing on sustainable mining practices, emphasizing their commitment to environmentally friendly cryptocurrency operations.
References: CME, Wise Advice, Arkham
Image: Shutterstock
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