The Royal Government of Bhutan has liquidated approximately $120 million in Bitcoin since the start of the year.
This move accelerates a divestment strategy that has reduced the Himalayan kingdom’s digital reserves by more than 60% from their peak.
Why is Bhutan Aggressively Selling its Bitcoin Holdings?
On March 28, blockchain analytics platform Arkham Intelligence reported that the latest transaction occurred on March 27, when the government moved 123.7 BTC—valued at roughly $8.5 million—to a previously unused address.
The transfer followed a significantly larger divestment just 48 hours earlier, in which Bhutan offloaded 519.7 BTC for approximately $36.75 million.
Bhutan appears to be utilizing over-the-counter desks and market makers, including Singapore-based QCP Capital, to execute these trades with minimal impact on public exchange order books.
The 2026 sell-off marks a shift in pace for the nation’s sovereign wealth fund, Druk Holding and Investments. While Bhutan’s sales were once sporadic, recent activity indicates a programmatic liquidation.
Since January 1, the government has moved $158.57 million out of its primary wallets while receiving only $38.84 million back.
“Bhutan sells portions of its Bitcoin in clips of ~$5-10 million, and sold ~3500 BTC mid-late September 2025. Bhutan’s outbound transfer volume has also started to increase in recent weeks, with the state appearing to reduce its holdings by about 1700 BTC since the start of the year,” Arkham intelligence stated.
Unlike most nations that hold Bitcoin through criminal asset forfeitures, Bhutan built its stash through a state-backed mining program launched in 2019.
By leveraging surplus hydroelectric power from its glacial rivers, the country amassed as much as 13,000 BTC. However, consistent selling over the past two years has whittled those holdings down to approximately 4,300 BTC, currently valued at nearly $300 million.
Analysts suggest the proceeds are being directed toward major national infrastructure projects, specifically the Gelephu Mindfulness City—a planned special administrative region.
The government previously pledged to allocate 10,000 BTC to the project, though current liquidation levels suggest the fund may be drawing from those reserves to finance early-stage construction.
Despite the heavy selling, Bhutan remains the world’s seventh-largest sovereign holder of Bitcoin, trailing only the United States, China, the United Kingdom, El Salvador, and the United Arab Emirates.
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