Arkham Intelligence data shows that more than $1 billion in bitcoin has departed wallets linked to Bhutan's government over the past year, flowing to exchanges and trading firms. The kingdom, however, says it hasn't sold any of its holdings—a direct contradiction with the blockchain analytics firm's on-chain tracking.

Market Context

Bhutan became one of the world's first governments to officially mine and hold bitcoin when it launched operations around 2019, powered by the country's abundant hydroelectric capacity. The nation accumulated its stash through mining rather than open-market purchases, positioning itself alongside El Salvador as a pioneer in sovereign bitcoin adoption.

In December, Bhutan announced its Bitcoin Development Pledge, committing up to 10,000 BTC toward the development of Gelephu Mindfulness City, a new economic zone in southern Bhutan. At the time of that announcement, the commitment was valued at roughly $860 million. Today, with bitcoin trading near $79,000, questions are mounting about whether the kingdom still has sufficient holdings to honor that pledge.

Analysis

The discrepancy between Arkham's data and Bhutan's official stance centers on what constitutes a "sale." Arkham tracked approximately $207 million in bitcoin moved from DHI-linked wallets this year alone to exchanges and trading firms, including wallets previously associated with Galaxy Digital and OKX. The firm estimates that at current outflow rates, Bhutan will have exhausted its remaining holdings by October 2026.

Druk Holding and Investments CEO Ujjwal Deep Dahal told CoinDesk via email: "I don't recall the last time we sold any BTC." A separate reply from the division declined to address specific wallet movements when asked about Arkham's tracking, responding only that "our statement stands and nothing to add beyond it."

DHI did not dispute Arkham's attribution of those wallets as belonging to the sovereign wealth fund. The lack of denial contrasts sharply with years of prior silence whenever Arkham published data on Bhutan-related wallet activity.

Arkham analysts noted that when an entity sends assets to an exchange or OTC trading firm, the typical purpose is to exchange those assets. However, once funds reach a centralized exchange, definitive proof of sale becomes difficult because order books are off-chain. The analytics firm acknowledged that deposits to exchanges generally indicate selling activity but don't confirm actual transactions.

A source close to one of the trading firms that received bitcoin from Bhutan-tracked wallets confirmed no sales have taken place recently—raising the possibility that movements include transfers to custody providers, collateral postings, lending arrangements or OTC deals structured differently than spot sales.

CoinDesk reported in March that Bhutan may have ceased mining operations entirely, with no significant inflows to its known wallets in over a year. That absence was unusual for an operation built on hydroelectric power. Yet Dahal said the country had been "fortunate this year" with early and consistent rainfall keeping hydropower plants running at strong capacity and mining operations active.

Key Numbers

- $1 billion+ in bitcoin reportedly moved from Bhutan-linked wallets over the past year, per Arkham Intelligence

- Approximately $207 million in bitcoin moved out of DHI wallets year-to-date 2026

- Holdings fell from roughly 13,000 BTC (October 2024) to approximately 3,100 BTC ($252 million at current prices) on Friday

- Bhutan committed up to 10,000 BTC toward Gelephu Mindfulness City development in December 2025 (then worth $860 million)

- Kingdom now holds approximately 3,300 BTC with an unrealized profit of roughly $754 million on its remaining position

What to Watch

Traders should monitor whether Bhutan's government provides additional clarification on wallet activity or confirms current holdings. The gap between DHI's public denials and Arkham's blockchain tracking warrants attention—extended silence could signal either a PR strategy or undisclosed transactions. Bitcoin prices near $79,000 make the kingdom's remaining position worth watching as potential selling pressure could emerge if outflows continue at current rates. Any confirmation of ceased mining operations would represent a significant shift in sovereign bitcoin policy. The October 2026 timeline Arkham projects for full depletion provides a concrete deadline for resolution.