Bhutan's Bitcoin Holdings Plummet 87% as Outflows Surge

Bhutan's Bitcoin holdings have cratered by 87% from their peak in October 2024, with the Himalayan kingdom now sitting on just 1,749.96 BTC worth approximately $113.7 million. The dramatic decline—from roughly 13,000 BTC—has been accelerated by a series of large transfers to exchanges, prompting speculation that the government is quietly liquidating its digital asset cache.

Massive Outflows Tracked by Arkham

On-chain analytics firm Arkham flagged the latest movement on Wednesday: 533 BTC ($34.5 million) sent from a wallet linked to Druk Holding and Investments—Bhutan's sovereign wealth fund—to a Binance deposit address. The transfer was executed in multiple batches, with the largest chunk of 227.194 BTC ($14.7 million) followed by a 48.228 BTC tranche ($3.1 million) and several smaller amounts under 2 BTC.

This is not an isolated event. Arkham has tracked over $230 million in outflows from Bhutan-linked wallets since the start of 2026, a pace that has led the platform to publicly question whether the government is liquidating its position. In May 2026, a separate 100.44 BTC transfer ($8.2 million) to an unlabeled address was also identified.

A Sovereign Shift in Strategy

Bhutan had been one of the more intriguing government holders of Bitcoin, having amassed its stash through mining operations powered by the country's abundant hydropower. The peak of 13,000 BTC in October 2024 placed it among the top government holders globally, trailing only the United States, China, the United Kingdom, Ukraine, El Salvador, and the UAE, according to Bitcoin Treasuries data.

The rapid drawdown suggests a strategic pivot. With the country's economy facing headwinds and the need for foreign currency reserves, Druk Holding may be monetizing its Bitcoin holdings to fund infrastructure projects or stabilize the national budget. The transfers to Binance—a centralized exchange—indicate an intent to sell, rather than simply custody.

Market Implications

While Bhutan's holdings are relatively small compared to the U.S. or China, the consistent selling pressure adds to the narrative of government entities reducing exposure. The broader context is a market where sovereign wealth funds and central banks are increasingly scrutinizing their crypto positions. Meanwhile, other developments—such as India's ban on Telegram affecting crypto communities—highlight the regulatory volatility that can impact digital asset markets.

Bhutan's remaining 1,749 BTC is a fraction of its former glory, but the country still holds a small Ethereum position (1.034 ETH, worth $1,820). Whether the outflows continue remains to be seen, but on-chain data suggests the trend is far from over.

Key Takeaways

1. Bhutan's Bitcoin reserves have fallen 87% from 13,000 BTC in October 2024 to 1,749.96 BTC.
2. Over $230 million in outflows from Bhutan-linked wallets have been tracked in 2026, with the latest 533 BTC sent to Binance.
3. The sales likely reflect a strategic shift by Druk Holding, Bhutan's state investment arm, to raise fiat currency for economic needs.
4. Bhutan now ranks lower among government BTC holders, which include the U.S., China, UK, Ukraine, El Salvador, and UAE.

Sources: CoinMarketCap Academy, CNBC, CryptoNews, CoinMarketCap Academy