In this pivotal chapter, Bilbo Baggins takes a significant step in asserting his own agency amidst the rising tensions surrounding the treasure of the Lonely Mountain. After the death of Smaug, various factions, including the men of Lake-town and the elves of Mirkwood, converge on the mountain, each seeking a share of the wealth hoarded by the dragon. Thorin Oakenshield, driven by greed and a sense of entitlement over the treasure, becomes increasingly obstinate and refuses to negotiate with the approaching groups.

Recognizing the brewing conflict, Bilbo feels a sense of loyalty towards Bard and the elves, who have shown kindness and support to his party during their journey. He understands the value of the Arkenstone, Thorin’s most prized possession, which he secretly obtained during their exploration of the treasure hoard. Bilbo decides to take matters into his own hands, believing that the Arkenstone can serve as a bargaining chip to prevent bloodshed and to broker peace between the dwarves and the other factions.

Under the cover of darkness, Bilbo stealthily makes his way out of the dwarven stronghold, determined to reach Bard and the elf king, Thranduil. The night is fraught with tension, and Bilbo’s heart races as he navigates the shadowy landscape, acutely aware of the dangers that lurk in the darkness. His use of the One Ring allows him to remain unseen, a skill he has grown accustomed to, highlighting his growth from a timid hobbit into a capable and resourceful adventurer.

Upon reaching Bard and the elves, Bilbo presents the Arkenstone as a token of goodwill and a means to negotiate with Thorin. He hopes that this act will mitigate Thorin's increasingly possessive attitude and prevent a potential conflict over the treasure. Bard, who understands the importance of this gesture, appreciates Bilbo’s bravery and the risks he has taken.

This chapter marks a crucial turning point in Bilbo’s character development. It illustrates his transition from a passive participant in the adventure to an active agent of change. Bilbo's decision to steal away in the night, despite the potential for severe repercussions, underscores his commitment to doing what he believes is right, rather than blindly following Thorin’s lead.

Bilbo's actions also reflect the broader themes of the story, including the consequences of greed, the importance of diplomacy, and the value of courage in the face of adversity. As he returns to the mountain, the weight of his decision looms large, setting the stage for the impending conflicts that will unfold in the chapters to come.