Bhutan moved another $8.1M in Bitcoin as the country’s sovereign BTC holdings fell roughly 70% from peak levels.
Bitcoin News
Bhutan moved 100 BTC worth $8.1 million out of its sovereign wallets on May 12, extending a sell-off that has cut the kingdom's reserves by roughly 70% from their late-2024 peak.
On-chain data from Arkham Intelligence shows the country has offloaded approximately $230.39 million in #Bitcoin (BTC) since January 2026, at a pace of around $50 million per month.
The kingdom now holds roughly 3,100 BTC valued at approximately $252 million, down from nearly 13,000 BTC at the end of 2024. Arkham warned that if selling continues at the same pace, Bhutan could exhaust its remaining holdings before the end of September 2026.
Unlike most sovereign Bitcoin holders, which typically build reserves through asset seizures, Bhutan mined its stash through state-backed operations launched in 2019, powered by surplus hydroelectric energy at near-zero cost. In December 2025, the country pledged up to 10,000 BTC, then worth approximately $1 billion, toward the development of Gelephu Mindfulness City, a Special Administrative Region in southern Bhutan.
"Hold and Optimize": Analysts Weigh In on Bhutan's BTC Strategy
Lacie Zhang, research analyst at Bitget Wallet, said the transfers reflect an active #sovereigntreasury management strategy rather than a bearish view on the market. She told Decrypt the proceeds are being used to monetize gains from hydropower-backed mining and redirect capital toward national development, while maintaining long-term exposure to the asset.
Zhang said the approach could serve as a model for other sovereign holders. She added that governments may begin treating BTC as a liquid strategic asset rather than a long-term vault position, actively managing exposure and reallocating capital when conditions allow. "Bhutan's approach suggests sovereign holders may begin adopting more sophisticated 'hold and optimize' strategies," she said.
Markus Levin, co-founder of XYO, pushed back on projections that Bhutan will deplete its holdings by September. He told Decrypt the selling has come in bursts rather than at a steady rate, pointing to a 2,077 BTC tranche sold in late 2024 and a separate $100 million sale in September 2025, with quieter periods in between. Levin noted that since Bhutan mined its holdings at near-zero cost, every sale generates a profit regardless of the current price.
Levin also said the sell-down is a rational decision for a government with active spending obligations. He noted that holding BTC is a viable strategy for entities without citizens to fund, but less practical for a country managing schools, salaries, and new infrastructure.
Gelephu Mindfulness City Opens Fast-Track Licensing
On May 12, Gelephu Mindfulness City announced an accelerated #licensing pathway for firms regulated in jurisdictions including Singapore, ADGM, and Hong Kong. Approved companies gain fast-track access to operations and integrated banking through DK Bank, which offers multi-currency accounts across nine currencies with fees waived for at least the first six months.
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