Bhutan cuts Bitcoin reserves amid strategic shift

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Bhutan cuts Bitcoin reserves

Flows and transaction structure

According to Arkham Intelligence, Bhutan moved Bitcoin worth about $72.3 million over the past 24 hours. Of that, roughly $44.4 million was sent to two unknown wallets. The transactions originated from addresses linked to Druk Holding & Investments, the sovereign fund managing the country’s digital assets.

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Separately, around 20.5 BTC (approximately $1.52 million) was transferred to OTC platform QCP Capital. Such transfers are typically used for large off-market deals.

Since the beginning of the year, total Bitcoin transfers have exceeded $110 million. Current holdings are estimated at around 4,453 BTC (about $330 million), down from more than 13,000 BTC at the 2024 peak.

Notably, no major inflows to associated wallets have been recorded for over a year. This may indicate a pause or significant slowdown in mining activity.

Focus on mining and hydropower

Bhutan built its Bitcoin reserves primarily through mining, leveraging excess hydropower. This approach allowed the country to accumulate BTC without entering the open market.

In this regard, Bhutan stood out among other countries, most of which obtained Bitcoin either through seizures or direct purchases. In Bhutan’s case, the strategy relied on systematic mining.

That dynamic now appears to be shifting. Declining holdings and ongoing transfers may point to more active asset management, including partial profit-taking following recent price gains.

Market impact and long-term implications

Bhutan’s actions highlight a broader trend: governments are beginning to manage crypto assets more actively rather than simply holding them. This brings the crypto market closer to traditional reserve management practices.

Such transactions may create short-term selling pressure, particularly if funds are routed through OTC desks. However, the scale remains relatively small compared to overall Bitcoin market liquidity.

At the same time, sovereign participation strengthens the institutional narrative around crypto. Alongside Bhutan, significant BTC holdings remain with the U.S. (primarily seized assets) and El Salvador, which continues to accumulate Bitcoin.

If such operations become more frequent, they could increase volatility while also contributing to market maturity as more participants adopt structured asset management strategies.

Earlier reports indicated that Bhutan is also developing its digital economy and has launched a “golden visa” program for digital nomads. Applicants must deposit $10,000 in TER tokens into a DK Bank account and pay an annual fee of $2,800. This underscores the country’s broader strategy to attract global digital capital alongside managing crypto reserves.

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