The Himalayan kingdom of Bhutan has significantly accelerated what crypto analysts are calling a sovereign Bitcoin reserve sell-off. According to data from Arkham Intelligence, the nation has offloaded approximately $216 million worth of Bitcoin since the start of 2024, with the pace of selling intensifying recently.
The scale of the divestment is substantial. Bhutan's Bitcoin holdings have been slashed by 70% since October 2024. At the end of 2024, the country's state-controlled wallets held 13,000 BTC, valued at $931 million. As of the latest data, those holdings have dwindled to just 3,774 Bitcoin, worth around $270 million. The sell-off continues to gather momentum, with over $12 million in Bitcoin moved out of Bhutanese wallets in the past 24 hours alone.
The transfers follow a consistent pattern, with funds flowing from the primary state-controlled wallet into newly created accounts. The Bhutanese government, which has placed its sovereign investment fund manager Druk Holding and Investments (DHI) in charge of its Bitcoin mining and wallet operations, has remained extremely tight-lipped about its investment strategy. Neither the government nor DHI responded to requests for comment.
The sell-off coincides with growing speculation that Bhutan has halted its once-prominent Bitcoin mining operations. Analysts note that Bhutan has not recorded a mining revenue inflow exceeding $100,000 for over a year, suggesting a significant slowdown or complete cessation of its hydropower-backed mining activities. Crypto analyst Colin Wu's outlet, WuBlockchain, stated on X, "It's been over a year since Bhutan recorded a mining inflow exceeding $100,000, suggesting that the kingdom may have halted its hydropower-backed Bitcoin mining operations." Digital assets analyst Crypto Patel echoed this, writing that hydropower-based mining in Bhutan appears to have "slowed or halted," marking a shift "from one of the most unique sovereign mining strategies to silent selling."
Historically, Bhutan raised over $765 million in profits from its Bitcoin mining ventures, leveraging its abundant hydroelectric energy. The current sell-off and apparent mining halt represent a major strategic pivot for the nation.
