Bhutan trims bitcoin reserve again

Bhutan has moved another 374.9 bitcoin, valued at about $25.2 million, out of wallets linked to the Royal Government, extending a wave of transactions that has sharply reduced one of the world’s most closely watched sovereign crypto holdings. Blockchain data tracked by Arkham and cited by multiple market outlets showed the transfer took place on March 31, with the coins routed to an external address beginning with “bc1q0”, lifting the past week’s outflows to more than 1,000 BTC.

What can be confirmed from the public data is the transfer itself, not an officially declared sale. That distinction matters. Crypto market reports have widely described the movement as part of a continuing sell-off because earlier Bhutan-linked transfers were traced to trading firms and exchange-connected wallets, including activity flagged in March and February. Still, neither Thimphu nor Druk Holding & Investments, the state investment arm associated with the wallets, has publicly set out the purpose of this latest transaction.

Even with that caution, the direction of travel is clear. Bhutan’s sovereign bitcoin stockpile has fallen steeply from its late-2024 peak of just over 13,000 BTC to below 4,000 BTC by the end of March 2026, according to market trackers drawing on Arkham data. Estimates vary slightly across outlets depending on the timing of each transfer and the bitcoin price used, but the broad picture is consistent: the reserve has shrunk by roughly two-thirds, and 2026 alone has seen net outflows of around $120 million or more.

Bhutan’s case stands apart from that of many governments holding bitcoin because its stash was not chiefly built through law-enforcement seizures. Arkham’s earlier research and Reuters’ reporting show the kingdom accumulated the asset through state-backed mining operations that have been running since 2019, drawing on the country’s hydropower resources. That has allowed Bhutan to present bitcoin mining not simply as speculation but as part of a wider strategy to turn surplus clean energy into fiscal value.

The state’s crypto policy has been tied closely to development ambitions. Reuters reported last year that profits from earlier crypto activity had been used to help fund government salaries, while officials argued that green digital mining could support growth, jobs and foreign investment. Bitdeer and Druk Holding announced plans in 2023 to raise as much as $500 million for carbon-free digital asset mining in Bhutan, underlining that the kingdom’s exposure to bitcoin was built around industrial policy as much as treasury management.

That background helps explain why each fresh wallet movement is being scrutinised far beyond crypto circles. For supporters, Bhutan’s model showed how a small hydropower-rich state could use digital assets to diversify national income. For critics, the latest drawdown raises harder questions about volatility, transparency and concentration risk. A reserve that once looked like a strategic cushion now appears to be actively managed, and possibly monetised, at a pace fast enough to alter its geopolitical and financial significance.

Another layer of debate surrounds what these transfers may mean for Bhutan’s longer-term digital ambitions. Some analysts have linked the sales to funding needs tied to Gelephu Mindfulness City and other national development priorities, especially after the kingdom’s push to brand itself as a hub for green and innovative industries. That connection remains inferential rather than officially confirmed for this transaction, but it has gained traction because Bhutan has openly cast digital assets as part of a broader economic transformation strategy.