Bhutan’s sovereign wealth fund, Druk Holding and Investments (DHI), has categorically denied selling its bitcoin holdings, directly contradicting on-chain data from Arkham Intelligence that shows massive outflows from wallets attributed to the Himalayan kingdom. The dispute centers on a discrepancy of over $1 billion, raising critical questions about the interpretation of blockchain data and the true state of government-held crypto reserves.
CEO Dahal’s blunt denial
In a statement to CoinDesk, DHI CEO Ujjwal Deep Dahal responded succinctly: “I don’t recall the last time we sold any BTC.” The fund further stated that its position remains unchanged, refusing to elaborate on the specific wallet movements flagged by Arkham. Dahal separately confirmed that Bhutan’s bitcoin mining operations—powered by green hydropower—are still active and upgrading hardware, though Arkham notes no significant inflows to known wallets have occurred in over a year.
The on-chain narrative
Arkham Intelligence, whose wallet attribution has gone undisputed for years, paints a starkly different picture. According to its data, Bhutan’s tracked holdings plummeted from approximately 13,000 BTC in October 2024 to just 3,121 BTC ($246.5 million) currently—a 76% reduction in under two years. Outflows have accelerated this year, with over $207 million sent to exchanges and trading firms, including wallets linked to Galaxy Digital and OKX. Arkham analysts note that when an entity sends assets to exchanges or OTC desks, the typical purpose is to liquidate.
At the present pace, Bhutan could fully deplete its remaining bitcoin by October 2026. A source close to one of the receiving trading firms, however, claimed no actual sales have occurred recently, leaving room for the possibility that the transfers represent custodial rearrangements or OTC structures rather than spot selling.
A broken pledge?
The drawdown directly threatens Bhutan’s December 2025 Bitcoin Development Pledge, which committed up to 10,000 BTC toward the development of the Gelephu Mindfulness City economic zone. With only 3,100 BTC left, the kingdom cannot honor that commitment at face value—even though its remaining position still carries an unrealized profit of roughly $754 million.
Market implications
For the broader crypto market, DHI’s firm denial removes a potentially bearish narrative of sovereign selling pressure. The episode highlights the limitations of reading on-chain data in isolation, as wallet movements do not always equate to sales. Investors will now watch for any further clarification or contradictory data that might resolve the $1 billion discrepancy between official statements and blockchain evidence.
