Key Takeaways
The Himalayan kingdom of Bhutan has denied selling its sovereign Bitcoin holdings, directly contradicting on-chain data that shows its wallets have transferred over $1 billion in BTC since mid-2025. The discrepancy pits official statements against blockchain transparency, raising questions about the nation's crypto strategy and its ambitious development plans.
"I don’t recall the last time we sold any BTC," Ujjwal Deep Dahal, CEO of Bhutan’s sovereign wealth fund Druk Holding and Investments (DHI), told CoinDesk. The fund, however, did not dispute ownership of the wallets identified by blockchain analytics firm Arkham Intelligence, which have been central to the analysis.
According to Arkham, wallets attributed to DHI saw their holdings plummet from a peak of nearly 13,000 BTC in October 2024 to just over 3,100 BTC, worth approximately $252 million. The data shows a consistent pattern of disposals, with transfers routed through institutional counterparties and trading desks rather than open-market sales. Many outgoing transactions involved wallets associated with centralized exchanges like OKX and institutional trading firm Galaxy Digital.
The apparent liquidations cast significant doubt on Bhutan's pledge to allocate 10,000 BTC toward the development of Gelephu Mindfulness City, a major economic and innovation zone. If Arkham's data is accurate, the kingdom no longer holds enough Bitcoin to fulfill that commitment, creating a potential funding gap for the flagship project.
Bhutan quietly emerged as a significant sovereign player in Bitcoin, beginning state-supported mining operations around 2019. It leveraged its abundant surplus hydropower to mine thousands of BTC at a low cost, at one point holding a treasury that represented an estimated 40 percent of the country's GDP. In 2023, DHI entered a $500 million partnership with mining firm Bitdeer to further scale its operations.
Unlike other sovereign holders, Bhutan’s officials have previously stated they were “mining to spend” rather than holding the assets long-term. This was demonstrated in 2023 when the kingdom transparently sold $100 million in BTC to double the salaries of civil servants, successfully stemming a brain drain from its public sector. The kingdom also reportedly lost 817 million in Bitcoin to the bankruptcies of BlockFi and Celsius in 2021.
Despite the questions surrounding its Bitcoin treasury, Bhutan is pushing forward with its crypto-friendly economic zone. Gelephu Mindfulness City recently unveiled a fast-track licensing framework to attract crypto and financial firms, offering integrated banking access and tax incentives, including a potential 0 percent corporate tax rate.
The controversy highlights the unique challenges and opportunities for nation-states operating in the crypto space. While DHI maintains its mining operations are active and benefiting from favorable weather conditions, the on-chain data suggests a significant shift in its strategy, leaving the market to weigh the government's word against the immutable record of the blockchain. As of the time of reporting, Bitcoin was trading at $77,123.59.
This article is for informational purposes only and does not constitute investment advice.
