Bhutan Transfers $25M BTC as Reserves Continue Drop

• Bhutan moved 375 BTC, extending 2026 outflows with transfers linked to trading desks and potential liquidation.

• Holdings drop sharply from past levels, confirming sustained reduction in Bitcoin reserves.

• Strategy shifts from mining to sales, with proceeds funding infrastructure and government projects.

The Royal Government of Bhutan transferred about 375 Bitcoin worth $25.2 million on March 31, according to Arkham data, extending a steady series of outflows in 2026. The move involved state-linked wallets connected to prior transfers toward trading firms. These transactions come as Bhutan continues reducing holdings after years of large-scale accumulation through mining.

Transfers Linked to Trading Counterparts

According to Arkham, the latest transfer moved 374.9 BTC to an unlabeled address previously tied to flows toward Galaxy Digital. Analysts at Onchain Lens noted that earlier transactions from the same pathway reached institutional trading desks. This pattern has raised attention around potential liquidation activity.

Earlier in March, Bhutan transferred 973 BTC worth about $72 million over two days. Shortly after, it moved 519.7 BTC valued at $36.75 million to external wallets. Additionally, a 123.7 BTC transfer worth $8.5 million occurred on March 27.

These transactions pushed weekly outflows beyond 1,000 BTC. Notably, Arkham reported total 2026 movements exceeding $183 million. Net flows to unmarked wallets reached roughly $144.91 million during the same period.

Holdings Decline as Outflows Continue

Meanwhile, Bhutan’s Bitcoin reserves have declined significantly from previous levels. Arkham data shows holdings near 3,954 BTC, valued at about $263.9 million. This marks a sharp drop from roughly 13,000 BTC recorded in October 2024.

Separately, other estimates place holdings at 10,769 BTC, worth around $714 million. This reflects differences in tracked wallets and valuation timing. However, both datasets confirm a downward trend in reserves.

The reported decline also follows a 25% drop in valuation over the past three months. As a result, Bhutan’s share stands near 0.051% of total Bitcoin supply.

Mining Origins and Shifting Strategy

Bhutan initially built its Bitcoin reserves through mining operations launched in 2019. The program used surplus hydropower under Druk Holding and Investments. At one stage, this strategy contributed nearly 40% of the country’s GDP.

However, Arkham data suggests mining activity may have stopped around November 2024. No major inflows have been recorded since then. Instead, 2026 activity shows steady sales, often between $5 million and $10 million per batch.

According to available data, proceeds support infrastructure projects and government spending tied to Gelephu Mindfulness City.