Bhutan, the tiny Himalayan kingdom that became a crypto legend for mining Bitcoin with hydropower, just made a massive move on-chain. But this time, it wasn't a buy—it was a emergency deleveraging.
If you've been wondering why Ethereum feels "heavy" today, look no further than the sovereign wealth fund Druk Holding & Investments (DHI).
1. The "Degen" King? 👑
Most people think countries just "HODL" in cold wallets. Bhutan does it differently. On-chain data reveals they’ve been running a high-stakes leveraged long on Ethereum since January.
The Setup: They collateralized over 117,000 ETH on Aave to borrow nearly $275M in USDT.
The Goal: To multiply their gains as ETH climbed. It was a brilliant move—until the market turned.
2. The $60M Survival Move 🛡️
Within the last 24 hours, as ETH prices wobbled, Bhutan’s "Health Factor" on Aave hit a dangerous 1.10. For those who don't trade DeFi: that’s the "Danger Zone" where a small dip can lead to a total liquidation.
To save their treasury, Druk Holdings just:
Slashed their position by 26,535 ETH.
Repaid over $100M of their USDT debt.
Boosted their health rate back to 1.17.
3. Why This Matters for YOU 📉
When a sovereign nation deleverages, it’s a massive signal. It tells us that even the "Smart Money" is worried about a deeper dip toward $2,100. Bhutan still holds 51,710 stETH, but their "buffer" is thin. If Ethereum doesn't hold the $2,200 level, we might see the rest of their bag hit the market.
💬 Vibe Check: Conviction vs. Risk
Bhutan is playing the game at the highest level, but they almost got "liquidated" by a 10% move.
Is it "Bullish" that they saved the position and kept 51k ETH?
Or "Bearish" that a nation-state is forced to sell at a loss to stay alive?
Are you HODLing like a King, or deleveraging like Druk? Drop a "🛡️" if you're playing it safe or a "🚀" if you're buying Bhutan's sell-off! 👇