Bhutan has moved another 100 BTC worth nearly $8.2 million as the country’s Bitcoin reserves continue to decline amid growing speculation around state linked selling activity.
Key Takeaways
- Bhutan transferred 100.44 BTC worth around $8.2 million to an unidentified wallet on Tuesday.
- State linked Bitcoin outflows have crossed $230 million in 2026, according to Arkham Intelligence.
- Bhutan still holds around 3,119 BTC, although reserves have dropped sharply from nearly 13,000 BTC in 2024.
- The country built its Bitcoin reserves through hydroelectric powered mining instead of asset seizures.
What Happened?
The Royal Government of Bhutan moved approximately 100.44 BTC in three separate transactions to an unlabeled Bitcoin wallet on Tuesday, according to blockchain analytics platform Arkham Intelligence. The transfers took place around 5:27 a.m. UTC and involved funds worth nearly $8.2 million at current market prices.
The latest transaction adds to a growing list of Bitcoin outflows connected to Bhutan’s sovereign crypto reserves. Analysts estimate that wallets linked to Bhutan have moved more than $230 million worth of Bitcoin since the start of 2026.
Bhutan is selling Bitcoin.
— Arkham (@arkham) May 12, 2026
Bhutan just moved 100 BTC ($8.1M) out of its holding wallets.
At their current rate of selling, they will run out of BTC before the end of September. pic.twitter.com/z8P7yf0kzS
Bhutan’s Bitcoin Transfers Continue
Arkham Intelligence, which has tracked Bhutan’s Bitcoin wallets since 2024, stated that the latest transfer appears consistent with previous transactions tied to selling activity. However, the exact purpose behind the movement remains unclear.
Some earlier transfers from Bhutan linked wallets were reportedly traced to crypto exchange Binance and investment firm Galaxy Digital. In previous months, blockchain observers also connected certain transactions to over the counter trading desks and institutional custody providers.
At the same time, analysts noted that the newest transfer could simply represent wallet restructuring rather than an immediate sale. The Bitcoin was reportedly moved from an older address format beginning with “3” to a more modern SegWit style address starting with “bc1q.”
Bitcoin address formats have evolved over the years for better efficiency and lower transaction costs. Older Pay to Script Hash addresses typically begin with “3,” while newer native SegWit wallets use the “bc1q” format. The most recent standard, known as Taproot, starts with “bc1p.”
Bhutan’s Bitcoin Reserves Have Fallen Sharply
Despite the continued outflows, Bhutan still holds approximately 3,119 BTC, currently valued at around $252.3 million based on market prices tracked by Arkham.
That figure marks a major decline from the country’s peak holdings of nearly 13,000 BTC recorded in October 2024. Reports suggest Bhutan’s reserves have dropped by close to 3,000 BTC since the beginning of 2026 alone.
Several large transfers earlier this year fueled speculation that the country may be reducing exposure to Bitcoin or using reserves to improve liquidity. In March, blockchain trackers flagged movements totaling roughly 700 BTC, valued at nearly $50 million at the time.
Additional reports from Yahoo Finance and other crypto news outlets stated that Bhutan transferred more than $84 million worth of Bitcoin during March 2026 alone. Analysts also identified transactions linked to Singapore based OTC trading firm QCP Capital.
Bhutan Built Its Bitcoin Holdings Through Mining
Unlike many governments that acquired Bitcoin through law enforcement seizures, Bhutan built much of its reserve through domestic mining operations.
The holdings are managed by Druk Holding & Investments, the country’s sovereign investment arm. Bhutan used its abundant hydroelectric resources to support environmentally friendly Bitcoin mining operations, helping the country quietly become one of the world’s largest nation state Bitcoin holders.
According to Bitcoin Treasuries data, Bhutan currently ranks among the top government holders of Bitcoin globally, behind countries including the United States, China, the United Kingdom, Ukraine, El Salvador, the United Arab Emirates, and Kazakhstan.
However, recent blockchain data has also sparked speculation that Bhutan’s mining activity may have slowed or stopped altogether. Arkham noted that the country has not recorded a Bitcoin inflow exceeding $100,000 in more than a year.
CoinLaw’s Takeaway
I think Bhutan’s Bitcoin strategy is entering a very different phase now. Earlier, the country was widely praised for quietly building a massive reserve through clean energy powered mining while most governments relied on seizures. But the steady pace of outflows in 2026 is starting to shift the narrative.
In my experience, repeated transfers over several months usually attract more market attention than one large movement. Even if Bhutan is only restructuring wallets or improving liquidity management, traders will continue watching these wallets closely. I found the most interesting part is that Bhutan still sits on massive unrealized profits despite the ongoing sales, which gives the country flexibility that many sovereign investors simply do not have.
