Bhutan has accelerated its Bitcoin sales, with on-chain data from Arkham Intelligence revealing net outflows of approximately $120 million in March alone. The country's state-linked wallets now hold roughly 4,453 BTC, a sharp decline from earlier levels.
March Transaction Volume Surges, Single Transfer Exceeds 500 BTC
On March 27, the government moved 123.7 BTC (worth $8.5 million) to a new address. A day earlier, a single transfer of 519.7 BTC marked one of the largest moves this year. Total outflows from these wallets in March reached about $158.57 million, while inflows were only $38.84 million, resulting in a net negative flow of roughly $120 million. Earlier months saw much smaller and less frequent transfers.
Small Batches to Avoid Market Disruption
Bhutan has consistently used a strategy of selling Bitcoin in smaller segments, typically ranging from $5 million to $10 million per transaction. This approach helps prevent sudden price shocks. However, March saw larger transactions emerge, with several transfers between $35 million and $45 million, and two notable outflows of $72 million and $36.7 million. Despite the increased size, the overall pattern remains one of staggered distribution.
Funds Likely Flow to Exchanges and Market Makers
According to Arkham Intelligence, most outbound transfers likely reached exchanges, market makers, or trading firms. Earlier this year, for instance, 184 BTC and 100 BTC were sent to QCP Capital, and a $1.5 million USDT transfer went to Binance. These flows suggest ongoing liquidity management rather than a sudden exit.
Holdings Cut by More Than 65% from Peak
Bhutan's Bitcoin holdings once peaked near 13,000 BTC. The current ~4,453 BTC represents a reduction of over 65%. Online discussions view this activity as routine conversion of digital assets into fiat, with buyers absorbing supply across multiple trades without causing major price disruption.
Although the pace of sales has increased, Bhutan continues to execute a structured reduction: small batches, diverse channels, and controlled timing. The approach minimizes concentrated market impact while steadily lowering the government's Bitcoin exposure.