Bitcoin: Bhutan sells 70% of reserves; holdings 3,954 BTC in 18 months

The Kingdom of Bhutan has reduced its sovereign Bitcoin stock substantially over the past 18 months, with holdings falling from roughly 13,000 BTC at their October 2024 peak to about 3,954 BTC today — a drawdown of approximately 70%. On-chain analytics attribute the transfers to wallets linked to the government and its investment arm.

Tracking data shows that Druk Holding & Investments (DHI), the state investment vehicle overseeing Bhutan’s mining and crypto assets, moved significant volumes this year. Total outflows from known Bhutan-tagged addresses have reached $215.7 million in 2026, including large multi-hundred-BTC transactions in March. Crucially, analysts note there have been no recorded mining inflows above $100,000 for over a year, which has prompted questions about whether state-backed mining operations have been curtailed or paused.

Such sizable sovereign transfers can influence market liquidity and sentiment. Episodes of publicized Bhutan sales have coincided with intraday pressure on Bitcoin prices as market participants price in potential additional supply from a state actor. While the overall price trajectory remains driven by broader demand and macro factors, concentrated seller activity from a known sovereign wallet tends to amplify short-term volatility.

The episode also fits into a wider policy and operational backdrop: Bhutan pursued hydro-powered mining expansion as a strategic revenue source, but post-2024 developments — including the Bitcoin halving and rising operational costs — appear to have reduced the cashflow advantage from mining. International assessments, including multilateral analyses, have noted the link between Bhutan’s energy strategy and its crypto ambitions, while flagging that mining economics are sensitive to power pricing and network conditions.

Market observers expect two primary near-term outcomes: continued opportunistic sales if the government prioritizes liquidity, or a pause and greater transparency if authorities aim to stabilize reserves and market perceptions. The absence of meaningful mining inflows increases the likelihood that recent transfers are portfolio reallocation rather than routine mining revenue. Investors and on-chain analysts will watch DHI’s counterparties and any formal disclosures closely, as those signals will shape how the market prices sovereign-sourced supply going forward.