Bhutan Dumps $120M in BTC, Arkham On-Chain Data Shows

The Bhutanese government has net sold approximately $120 million in Bitcoin this year, significantly reducing its sovereign BTC holdings, according to on-chain data tracked by Arkham Intelligence.

Arkham Traced $120M in Net BTC Outflows From Bhutan’s Wallets

Blockchain analytics firm Arkham Intelligence, which labels and tracks government-attributed wallet addresses, flagged the Bhutanese state’s Bitcoin activity in a report shared by Bitcoin Magazine. The data indicates net sales of roughly $120 million in BTC so far in 2026, with holdings reduced by an estimated 1,700 BTC or more.

The “net sold” figure accounts for the difference between gross BTC disposals and any new accumulation during the same period. Arkham’s wallet attribution methodology links the addresses to the Royal Government of Bhutan based on on-chain clustering and deposit patterns to known exchanges.

Arkham’s research page on the Royal Government of Bhutan provides a breakdown of the tracked addresses and their transaction history. Readers can independently verify the wallet flows and timeline of sales through the platform’s public dashboard.

This is not the first round of selling. Earlier in March, reporting from CoinTelegraph confirmed Bhutan offloaded $72.3 million in Bitcoin during a broader market downturn, suggesting the $120M net figure reflects cumulative disposals across multiple tranches.

Yahoo Finance reporting characterized the activity as Bhutan’s third consecutive round of Bitcoin offloading, reinforcing the pattern of sustained, deliberate portfolio reduction rather than a single liquidation event.

How Bhutan Built a Sovereign Bitcoin Stack

Bhutan’s Bitcoin holdings were accumulated through state-owned entity Druk Holdings & Investments, which leveraged the country’s abundant and cheap hydroelectric power to mine BTC. The operation began around 2019 and was never officially announced by the Bhutanese government, making Arkham’s on-chain forensics the primary window into the kingdom’s crypto activity.

The stealth approach distinguishes Bhutan from other sovereign holders. El Salvador publicly adopted Bitcoin as legal tender and regularly announces purchases. The United States holds seized BTC from law enforcement actions. Bhutan, by contrast, quietly mined and accumulated without public disclosure, and is now quietly selling.

For DeFi participants managing BTC-backed positions, sovereign sellers represent a structural liquidity variable worth monitoring. Large, sustained sell programs from nation-state wallets create persistent sell pressure that differs from typical market activity. Unlike retail or fund liquidations, sovereign sales tend to follow policy timelines rather than market sentiment, as explored in our overview of the Bitcoin Fear and Greed Index and its implications for DeFi positioning.

What Remains Unclear

Several key questions remain unanswered. Bhutan has not publicly commented on its Bitcoin strategy or the reasons behind the sell-off. Whether the proceeds are being converted to fiat for government expenditures, reinvested in other assets, or used for domestic development projects is unknown.

The exact remaining balance in Bhutan’s wallets fluctuates with ongoing transactions. CryptoNinjas previously reported on Bhutan’s BTC holding trajectory through 2025, showing a gradual decline that the 2026 sales have accelerated.

Arkham’s data provides the most transparent view available into a sovereign actor that has chosen not to disclose its Bitcoin operations. As institutional interest in Bitcoin continues to evolve, with developments like Morgan Stanley’s low-cost Bitcoin ETF expanding traditional access points, Bhutan’s quiet exit from its mining-derived stack stands as a notable counter-signal from a nation-state participant.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.