The Royal Government of Bhutan has significantly reduced its national Bitcoin reserves, selling over $640 million worth of BTC over the past 18 months and sparking concerns about a potential full exit from its position. According to data from Lookonchain and Arkham Intelligence, Bhutan's sovereign wallet has been consistently offloading BTC since October 2024.
The country's holdings have plummeted from a peak of 13,295 BTC in 2024 to just 3,954 BTC as of the latest sale, a reduction of approximately 70%. The most recent transaction involved the sale of 319.7 BTC, valued at $22.68 million, which occurred after Bitcoin's price pushed above $70,000. This suggests the government may be selling at a profit, as much of its BTC was reportedly mined at a very low cost using the nation's hydropower resources.
Analysts speculate on the motives behind the sales, which include securing revenue for administrative purposes or potential geopolitical strategies, such as using crypto to access goods or services otherwise restricted by sanctions. However, no official reason has been given by the Bhutanese government. Notably, it has been over a year since the country recorded any significant mining inflows above $100,000, indicating its once-active, hydropower-powered Bitcoin mining operations may have slowed or ceased entirely.
This sustained selling activity from a national holder presents a counter-narrative to the broader institutional accumulation trend, exemplified by companies like MicroStrategy and Metaplanet. It raises questions about whether other institutional or sovereign holders might follow a similar profit-taking or liquidation pattern, intertwining Bitcoin's market dynamics with geopolitical and fiscal strategies.
