Bhutan Dumps 70% of Bitcoin Holdings as Sovereign Liquidation Continues

Bhutan has transferred another 319 BTC (worth approximately $22.68 million) from its state-linked wallets, extending what's becoming one of the most aggressive sovereign bitcoin divestitures we've tracked. According to Arkham Intelligence data, this latest move brings total outflows since late October 2024 to over 9,000 BTC—a staggering liquidation that's slashed the kingdom's holdings by roughly 70%.

The Math on Bhutan's Bitcoin Exit

The numbers are stark. In late 2024, Bhutan held approximately 13,000 BTC. Fast forward to April 2025, and that figure plummeted to 3,654 BTC—a dramatic retreat from what was once positioned as a long-term strategic digital reserve. March alone saw 1,667 BTC move out the door, representing roughly $120 million in selloffs. For context, that's roughly 12.8% of their entire holdings liquidated in a single month.

Despite the massive reduction, Bhutan still ranks as the fifth-largest nation-state bitcoin holder globally—behind the United States (328,000 BTC), the United Kingdom (61,000 BTC), El Salvador (7,600 BTC), and the UAE (7,000 BTC). The kingdom's inventory now sits just above the 3,600 BTC threshold, making it a significant but diminishing player in the sovereign crypto asset space.

Green Mining Strategy Meets Capital Needs

Here's the context that matters for traders: Bhutan's entire crypto positioning was built on something genuinely differentiated—hydropower-backed bitcoin mining. The country leveraged its surplus carbon-free electricity to run mining operations, framing it as part of a "green Bitcoin economy" designed to diversify export revenues beyond traditional hydroelectric sales.

The strategy made sense on paper. Use renewable energy to mine BTC, position it as an ESG-friendly digital asset that corporations might purchase to meet environmental targets, and build a modern economic infrastructure around digital assets. That's exactly what Bhutan claimed it wanted to do.

The Disconnect Between Strategy and Reality

Here's where it gets interesting for our analysis: in December 2024, Bhutan announced a National Bitcoin Development Pledge committing up to 10,000 BTC (valued at roughly $1 billion then) to anchor its Gelephu Mindfulness City special administrative region. The allocation was supposed to be managed through collateral options, yield-generating instruments, or long-term holding.

Yet the actual wallet data tells a different story—one of systematic disposal rather than strategic accumulation or holding. Bhutan hasn't publicly commented on these transfers, leaving traders and analysts to infer motivation from transaction patterns and wallet labels tied to the Royal Government and its investment arm, Druk Holding & Investment.