Bhutan Denies Bitcoin Sales Despite Reports of $1 Billion BTC Outflows

Bhutan has denied claims that it sold nearly $1 billion worth of Bitcoin, even as blockchain data suggests major BTC movements from wallets linked to the country’s sovereign wealth fund.

Data from blockchain analytics firm Arkham Intelligence shows wallets connected to Druk Holding and Investments (DHI), Bhutan’s state investment arm, moved large amounts of Bitcoin since mid-2025. Holdings reportedly dropped from nearly 13,000 BTC in October 2024 to around 3,100 BTC by May 2026, leading to speculation that the country may have sold part of its reserves.

However, DHI Chief Executive Officer Ujjwal Deep Dahal pushed back on the claims, saying, “I don’t recall the last time we sold any BTC.” Officials also declined to comment on specific wallet transactions or confirm Bhutan’s current Bitcoin holdings.

Wallet Transfers Spark Questions About Bhutan’s Bitcoin Reserves

Arkham data shows around $207 million in Bitcoin moved from Bhutan-linked wallets this year to exchanges and trading firms often linked with crypto sales, including wallets connected to Galaxy Digital and OKX. However, blockchain transfers alone do not prove coins were sold.

An analyst from Arkham said moving funds to exchanges generally suggests selling activity, though final transactions happen offchain and cannot be fully verified.

Bitcoin Pledge and Mining Operations Under Focus

The reported decline in holdings has also raised questions about Bhutan’s earlier promise to dedicate up to 10,000 BTC toward the development of Gelephu Mindfulness City, a planned economic zone announced in December.

Meanwhile, reports earlier this year suggested Bhutan may have slowed or stopped some mining operations due to reduced wallet activity. Dahal rejected those concerns, saying strong rainfall has helped hydropower plants operate efficiently and confirmed the country continues mining Bitcoin using renewable energy while upgrading equipment to stay competitive.