Bhutan is continuing to unwind its sovereign bitcoin position, gradually reducing holdings accumulated during one of the earliest government-backed mining initiatives.
The country’s reserves have fallen from დაახლოებით 13,000 BTC in October 2024 to 3,954 BTC, representing a roughly 70% decline over the past 18 months. On-chain data indicates that $215.7 million worth of bitcoin has exited Bhutan-linked wallets in 2026 alone. Notably, the last mining inflow exceeding $100,000 occurred more than a year ago, signaling that mining activity may no longer be active.
In its latest transaction, Bhutan transferred 319.7 BTC—valued at approximately $22.68 million—on Thursday, according to Arkham Intelligence. Around 250 BTC was sent to a wallet previously linked to flows through Galaxy Digital and OKX, suggesting potential liquidation. The remaining 69.7 BTC was directed to a newly created, unidentified address.
The transfer aligns with a broader trend of sustained outflows.
Bhutan initially built its bitcoin holdings through a hydropower-driven mining operation managed by Druk Holding and Investments, its sovereign wealth fund. The initiative positioned the country as a unique case of sovereign participation in bitcoin mining, leveraging low-cost renewable energy and a flexible capital framework.
That strategy has since shifted toward distribution. Current holdings are valued at roughly $280.6 million, with a notable portion of recent transfers moving to unlabeled wallets, leaving their final destination unclear.
The ongoing sell-down highlights the operational and strategic challenges of maintaining a sovereign bitcoin allocation through prolonged market volatility. It also reflects the gap between bitcoin’s narrative as a reserve asset and the realities of managing large-scale exposure at the state level.
With 3,954 BTC remaining, Bhutan’s position is now modest relative to institutional demand. Corporate buyers such as Strategy have, at times, accumulated more bitcoin in a single week than Bhutan currently holds—underscoring a broader shift in market influence toward private-sector balance sheets.
