The Royal Government of Bhutan has liquidated approximately $120 million in Bitcoin since the beginning of the year.
With this step, Bhutan accelerates a sales strategy, causing the digital reserves of the Himalayan kingdom to have decreased by more than 60% since the high.
Why is Bhutan aggressively selling its Bitcoin holdings?
On March 28, blockchain analysis platform Arkham Intelligence reported that the last transaction took place on March 27, when the government sent 123.7 BTC—worth approximately $8.5 million—to a previously unused address.
The transfer came after a much larger sale just 48 hours earlier, where Bhutan sold 519.7 BTC for about $36.75 million.
Bhutan appears to be using over-the-counter desks and market makers like Singapore's QCP Capital to execute these transactions without much impact on the public order books of crypto exchanges.
The sales wave of 2026 shows a change in pace for the national investment fund, Druk Holding and Investments. Where sales were previously sporadic, there is now a more structured liquidation.
Since January 1, the government has moved $158.57 million from its main wallets, while only $38.84 million was received.
“Bhutan is selling parts of its Bitcoin in amounts of ~$5-10 million, and sold ~3,500 BTC mid to late September 2025. The outgoing volume from Bhutan has also increased in recent weeks. It seems that the state has reduced its holdings by about 1,700 BTC since the beginning of the year,” said Arkham Intelligence.
Unlike many countries that hold Bitcoin through the seizure of criminal assets, Bhutan built its stockpile through a state-supported mining program that started in 2019.
By utilizing excess hydropower from glacial rivers, the country gathered as much as 13,000 BTC. Due to ongoing sales over the past two years, this number has decreased to about 4,300 BTC, now worth nearly $300 million.
Analysts believe that the proceeds are being allocated for large national infrastructure projects, particularly the Gelephu Mindfulness City—a planned special administrative region.
The government previously promised to allocate 10,000 BTC to this project, but the current pace of sales suggests that the fund is drawing from these reserves to finance the first phase of construction.
Despite the large sales, Bhutan remains the seventh largest state that holds Bitcoin. Bhutan is just behind the United States, China, the United Kingdom, El Salvador, and the United Arab Emirates.