Allegations that Bhutan’s state-backed investment firm Druk Holding and Investments (DHI) was selling Bitcoin have sparked controversy following statements from country officials.
According to Arkham Intelligence data, it is alleged that approximately $1 billion worth of Bitcoin has been withdrawn from wallets reportedly belonging to Bhutan since July 2025, while DHI management stated that they do not recall making any sales.
Bhutan, a small Asian country located in the Himalayas, is known as the second country after El Salvador to officially mine and hold Bitcoin reserves. According to data tracked by the on-chain data platform Arkham Intelligence, approximately $207 million worth of Bitcoin has been transferred this year alone from wallets believed to belong to Bhutan’s sovereign wealth fund, DHI, to various exchanges and trading companies.
According to Arkham data, Bhutan-linked wallets held approximately 13,000 $BTC in October 2024, but this figure dropped to around 3,100 $BTC as of Friday. If the current rate continues, it is estimated that Bhutan could have sold all of its Bitcoin holdings by October 2026.
However, DHI CEO Ujjwal Deep Dahal stated, “I don’t remember the last time we sold $BTC.” The company also responded to questions about the wallet activity tracked by Arkham with only, “Our statement remains valid; we have nothing further to add.”
While Bhutan did not directly dispute Arkham’s wallet matching claims, it also did not confirm how much Bitcoin the country holds. Arkham, however, states that Bhutan has been actively mining Bitcoin since at least 2019 and that the government funds at least four mining facilities in the country.
Arkham analysts noted that sending assets to centralized exchanges or OTC trading companies is generally intended for sale. However, the analysts added that because order books on centralized exchanges are not visible on-chain, it cannot be definitively proven that the transfers represent a sale.
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On the other hand, a source close to one of the trading companies that buys Bitcoin from Bhutan-linked wallets suggested that no sales have taken place recently. This raises the possibility that the transfers may have been made through custody services, collateral, credit transactions, or OTC deals, rather than direct spot sales.
In December, the Bhutanese government announced it would allocate up to 10,000 $BTC for the development of Gelephu Mindfulness City, an economic zone to be built in the south of the country. This commitment, valued at approximately $860 million at the time of the announcement, is said to contradict the estimated amount of Bhutan’s $BTC holdings according to current on-chain data.
However, DHI CEO Dahal stated that the early and consistent rainfall this year has supported hydroelectric power generation, enabling mining operations to continue actively. Dahal also noted that all Bitcoin mining in Bhutan is powered by renewable energy and that they are transitioning to next-generation equipment to remain competitive.
*This is not investment advice.