Bhutan is facing mounting speculation over the future of its cryptocurrency reserves after blockchain analytics suggested the Himalayan kingdom may have transferred or sold a significant portion of its Bitcoin holdings.
According to data released by Arkham Intelligence, wallets linked to Bhutan’s sovereign investment arm, Druk Holding and Investments (DHI), have reportedly moved large volumes of Bitcoin to cryptocurrency exchanges and trading firms since mid-2025.
Arkham estimates that Bhutan-linked wallets may have transferred nearly $1 billion worth of Bitcoin since July 2025. The analytics firm noted that holdings associated with these wallets declined from roughly 13,000 BTC in October 2024 to approximately 3,100 BTC by Friday evening India time, leaving an estimated balance worth around $252 million at current market prices.
The company further suggested that, if the current pace of transfers continues, Bhutan’s publicly tracked Bitcoin reserves could be depleted by October this year.
Despite the growing speculation, Bhutanese officials have denied claims that the country has been actively liquidating its cryptocurrency assets.
Ujjwal Deep Dahal, Chief Executive Officer of DHI, reportedly told CoinDesk that he does not recall the organisation recently selling any Bitcoin. When questioned specifically about the wallet movements identified by Arkham, DHI maintained its earlier position without providing further clarification.
The sovereign investment authority neither confirmed nor denied the exact size of Bhutan’s current Bitcoin reserves and did not directly challenge Arkham’s attribution of the wallets to DHI.
Bhutan has attracted global attention in recent years for quietly building one of the world’s largest sovereign Bitcoin holdings through mining activities rather than direct market purchases. Arkham previously reported that the kingdom has been operating state-backed Bitcoin mining facilities since at least 2019, largely powered by Bhutan’s abundant hydroelectric energy resources.
An Arkham analyst noted that transfers of cryptocurrency assets to exchanges or over-the-counter trading firms are often viewed as indicators of possible selling activity. However, the firm acknowledged that blockchain data alone cannot definitively confirm whether transferred Bitcoin was ultimately sold.
Industry observers have suggested several alternative explanations for the movements, including transfers to custody providers, collateral arrangements, lending agreements, or over-the-counter deals structured differently from standard spot market sales.
The questions surrounding Bhutan’s cryptocurrency reserves intensified after the kingdom announced its Bitcoin Development Pledge linked to the future development of Gelephu Mindfulness City, a large-scale economic initiative in southern Bhutan.
At the time of the announcement, Bhutan pledged up to 10,000 BTC toward the long-term development of the project. However, if Arkham’s estimates regarding current holdings are accurate, the country may no longer possess sufficient reserves to fulfil that commitment entirely.
Meanwhile, separate reports earlier this year suggested Bhutan’s mining operations may have slowed or temporarily stopped due to a lack of significant inflows into the wallets associated with the country’s mining activity.
Dahal dismissed those concerns, stating that Bhutan’s environmentally friendly mining operations remain active and continue benefiting from strong hydropower generation supported by favourable rainfall conditions.
“All Bitcoin mined in Bhutan is powered by green energy, and we are continuously upgrading to the latest-generation rigs to remain competitive,” Dahal reportedly said.
The conflicting narratives between official statements and publicly observable blockchain activity have created uncertainty within the cryptocurrency industry, with analysts continuing to monitor the kingdom’s wallet movements closely.
As one of the few governments globally known to actively mine and hold Bitcoin at a sovereign level, Bhutan’s evolving cryptocurrency strategy could have broader implications for state-backed digital asset adoption and the future role of cryptocurrencies in national economic planning.