Bhutan’s state fund has intensified its Bitcoin transfers, with Arkham Intelligence tracing the latest movement to on-chain addresses linked to Binance and QCP Capital. Transfers to major exchanges and trading venues are commonly read as a sign of planned sales, or the use of Bitcoin as collateral in other financial transactions.
Reserves have fallen sharply from earlier levels
Following these transactions, the fund’s Bitcoin reserve now stands at 4,453 BTC, down steeply from more than 13,000 BTC held only months ago. That means over two-thirds of its digital portfolio has already been sold. Earlier this year, the fund also carried out two sizable transfers valued at $72 million and $12 million. Market watchers cited in the source view the direct routing to exchanges as a sign that the fund wants faster execution when prices become attractive.
Bitcoin was built through mining, not open-market buying
Bhutan’s path into Bitcoin differs from that of most sovereign investors. The country accumulated much of its position through large-scale digital mining powered by domestic hydropower capacity rather than by buying coins in the market. Low energy costs allowed the fund to expand reserves with limited spending, while freshly mined Bitcoin flowed into state-controlled holdings.
Blockchain data now points to a clear change in approach. After a long accumulation phase running from 2022 to the end of 2024, the state fund has begun selling Bitcoin at regular intervals. The report says proceeds are being redirected toward infrastructure work and projects such as Gelephu Mindfulness City, indicating a move to convert mining-generated digital assets into funding for domestic development.
A different route from El Salvador
The shift sets Bhutan apart from El Salvador, which has kept adding Bitcoin to its reserves. Bhutan is taking the opposite route by liquidating part of its digital surplus and channeling the cash into the real economy. Even with the increased sales activity, the report says the effect on Bitcoin’s market price has remained limited, as existing demand has so far absorbed the added supply without clear signs of disorder.
Wallet activity tied to Druk Holding has drawn closer attention with Bitcoin trading around $71,000. Analytics firms are watching those addresses as a notable sell-side node in the market. Authorities at Druk Holding and Investments said their Bitcoin strategy now prioritizes directing value toward domestic projects instead of long-term holding, with proceeds supporting sectors seen as important for Bhutan’s future growth.