The government of the Kingdom of Bhutan has sold Bitcoin worth approximately 120 million USD since the beginning of this year
This movement accelerates the strategy to reduce investments, which has caused the digital reserves of the Himalayan kingdom to decrease by more than 60% from the peak
Why is Bhutan selling Bitcoin in its possession so quickly?
On March 28, the blockchain analytics platform Arkham Intelligence reported that the latest transaction occurred on March 27, where the government moved 123.7 BTC, worth approximately 8.5 million USD, to an unused address.
This transfer occurred just 48 hours after a major sale, where Bhutan sold 519.7 BTC for approximately 36.75 million USD.
Bhutan appears to be using over-the-counter desks and market makers, including QCP Capital in Singapore, to conduct transactions while minimally impacting the public market order book.
Sales in 2026 mark a shift in the strategy of the Druk Holding and Investments sovereign wealth fund. Previously, Bhutan sold only occasionally, but the recent movements indicate a systematic reduction of holdings.
Since January 1, the government has transferred out 158.57 million USD from the main wallet, but has only received back 38.84 million USD.
Arkham Intelligence revealed that Bhutan sold Bitcoin in batches of about 5-10 million USD at a time and sold approximately 3,500 BTC in mid to late September 2025. The volume of outflows from Bhutan began to increase in the weeks following, as it appeared that the state was reducing its holdings by about 1,700 BTC since the beginning of this year.
Unlike most countries that hold Bitcoin through asset seizure from crime, Bhutan has accumulated Bitcoin through a state-supported mining project since 2019.
By utilizing excess hydropower from glacial rivers, the country has accumulated up to 13,000 BTC. However, over the past two years, continuous sales have reduced this to about 4,300 BTC, which is currently valued at approximately 300 million USD.
Analysts suggest that the proceeds from the sales are being used for the nation's large infrastructure projects, particularly the Gelephu Mindfulness City, which is planned to be a special administrative zone.
The government had previously pledged to allocate 10,000 BTC to this project, but the current level of sales may indicate that the fund has begun to use these reserves for financing the initial stages of construction.
Despite heavy selling, Bhutan remains the seventh largest holder of Bitcoin in the world, surpassed only by the United States, China, the United Kingdom, El Salvador, and the United Arab Emirates.