Bhutan is quietly implementing one of the most unusual bitcoin experiments ever undertaken by a government.
The Royal Government of Bhutan transferred approximately 319.7 BTC worth $22.68 million to two addresses on Thursday, according to data from Arkham Intelligence. Approximately 250 BTC went to a wallet previously used to route funds for sale through Galaxy Digital and OKX. Another 69.7 BTC was sent to a new unmarked address.
The transaction is part of a series of ongoing sales that have been going on for some time.
Bhutan had approximately 13,000 BTC as of October 2024, accumulated through a hydropower-backed mining operation run by Druk Holding and Investments, the kingdom’s sovereign wealth fund.
That was the proof of concept for sovereign bitcoin mining. A small, landlocked country with cheap renewable energy, no legacy financial infrastructure to protect, and a sovereign wealth fund willing to experiment.
Since then, it has sold steadily. Holdings now stand at 3,954 BTC worth approximately $280.6 million, a 70% reduction in 18 months. Arkham data shows that $215.7 million worth of bitcoin has left Bhutanese holding addresses this year alone, of which $162.6 million has gone to untagged wallets.
Selling has accelerated in a market where virtually every other major holder is doing the opposite.
Strategy bought 4,871 BTC for $330 million last weekend, bringing its total to 766,970. US spot ETFs absorbed approximately 50,000 BTC in March. The Ethereum Foundation staked $93 million worth of ether in a single day instead of selling it. Even gold-backed sovereign wealth funds have increased their positions during the conflict with Iran.
Bhutan is the only sovereign-level holder that is visibly in liquidation. But there is also the question of whether the mining operation itself is still in operation.
Arkham data shows that Bhutan’s last bitcoin inflow exceeding $100,000 was recorded more than a year ago. A government that once generated bitcoins from energy extracted from its own rivers may now simply be spending what it accumulated, with no new supply arriving to replace what it sells.
Druk Holdings has not responded to several emails and calls from CoinDesk over the past week, the latest of which was sent in the Asian morning hours of Friday. He has not commented publicly on the transfers or the status of his mining operation.
However, economics may explain the change.
Bhutan’s mining operation was viable when the difficulty was lower and bitcoin was trading above $90,000. At current levels near $71,000, with network difficulty at all-time highs and the post-halving block reward reduced to 3,125 BTC, small-scale sovereign mining margins have compressed significantly.
The same hydropower that made Bhutan’s operation novel can now generate more revenue from electricity sold to neighboring India than from bitcoin mining, as mining hardware depreciates with each difficulty adjustment.
Choosing to sell rather than hold or mine is an insight into the gap between bitcoin’s narrative appeal to nation-states and the operational reality of holding a position through a prolonged drawdown.
Bhutan’s remaining 3,954 BTC is now smaller than what Strategy buys in a typical week. The kingdom that once had 13,000 bitcoins mined from its own mountains is seeing a single company in Virginia accumulate more in five days than Bhutan has left.
Read more: Bhutan moves another 500 bitcoins to exchanges as 2026 outflows exceed $150 million
