Bhutan Pushes Back on $1B Bitcoin Selloff Talk, Says It "Doesn't Recall" Any Sales
Bhutan has emerged as one of the market's most unexpected sovereign Bitcoin holders, but new on-chain data is fueling a dispute over what happened to its stash.
Blockchain analysts report that about $1 billion in BTC has moved out of wallets linked to Bhutan since mid-2025. Bhutanese officials have rejected the selloff narrative, saying they "don't recall" any Bitcoin sales.
The on-chain trail points to a sharp drawdown. Bhutan was estimated to hold around 13,000 BTC as of October 2024, largely built through state-owned Druk Holding & Investments, which leveraged low-cost hydroelectric power to mine Bitcoin. By spring 2026, holdings appeared to fall to roughly 3,100–3,400 BTC. That implies a decline of about 9,500–9,900 BTC, roughly 75% from peak levels.
Estimated BTC movements in 2026 alone exceed $206 million, with about 2,800–3,000 BTC moved in the first quarter. If the pace persists, some analysts project Bhutan could fully unwind its Bitcoin position by October 2026.
The gap between visible on-chain activity and what officials are willing to acknowledge has drawn attention, particularly at a time when sovereign Bitcoin holdings globally were estimated to rise about 26% from October 2025 to May 2026.
Bhutan's mining strategy has been tied to its geography and power profile. The Himalayan kingdom has abundant water resources and generates more electricity than its population of about 800,000 consumes. Channeling that surplus into mining has been positioned as a strategic use of excess capacity for a landlocked economy with GDP around $3 billion.
For investors, sovereign Bitcoin holdings can act as a signal of institutional legitimacy. A potential reduction approaching 10,000 BTC over about 18 months adds supply-side pressure. If Bhutan does exit by late 2026, as some forecasts suggest, it would stand out against the broader accumulation narrative. The global 26% increase in sovereign holdings may be supportive, but one country potentially liquidating roughly three-quarters of its stack while denying it is a signal the market will be watching.
