Bhutan bitcoin holdings down 70% as sovereign reserves shift, mining inflows fade

Over the past 18 months, the Himalayan kingdom has sharply reduced its bhutan bitcoin exposure, raising questions over its long-term digital asset strategy.

Bhutan cuts Bitcoin reserves by 70%

According to on-chain intelligence from Arkham, Bhutan has sold around 70% of its Bitcoin holdings since late 2023. The country’s stash fell from roughly 13,000 BTC in October 2024 to just 3,954 BTC today, marking a significant drawdown in sovereign crypto reserves.

Moreover, the remaining 3,954 BTC are valued at approximately $280.6 million, based on current market prices. This implies that more than $215.7 million worth of BTC has been transferred out in 2024 alone, underlining the scale of Bhutan’s ongoing BTC selloff.

Large BTC outflows and declining mining inflows

Arkham data analysis also highlights sustained outbound flows from wallets associated with Bhutan’s state entities. That said, the exact policy motivation behind this bhutan bitcoin reserve reduction remains undisclosed, leaving room for speculation about liquidity needs or portfolio rebalancing.

Furthermore, it has now been over a year since Bhutan registered a mining inflow exceeding $100,000 to its identified addresses. This abrupt slowdown suggests that the kingdom may have paused, or significantly scaled back, its hydropower-backed Bitcoin mining operations that once leveraged its abundant clean energy resources.

Uncertain outlook for Bhutan’s crypto strategy

The sharp decline in bhutan bitcoin holdings, combined with reduced mining activity, signals a notable shift in the country’s approach to digital assets. However, without official communication from Thimphu, it is unclear whether this is a temporary adjustment or a more permanent retreat from large-scale sovereign BTC exposure.

In summary, Bhutan’s BTC position has moved from roughly 13,000 BTC to 3,954 BTC within 18 months, while mining inflows above $100,000 have disappeared for over a year. The data points to a strategic reset, even if the government’s precise objectives remain opaque.