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Bhutan’s sovereign wealth fund, Druk Holding and Investments (DHI), has been accused of selling roughly $1 billion worth of bitcoin since July 2025, according to Arkham Intelligence. DHI officials deny any sales, saying they have not sold any BTC. The dispute highlights the challenges of tracking state‑owned crypto holdings and raises questions about Bhutan’s future bitcoin strategy.

Background

Bhutan is the second country after El Salvador to officially mine and hold bitcoin. The kingdom has used its abundant hydroelectric capacity to run mining operations since 2019, funding at least four known sites. In December 2023, Bhutan pledged up to 10,000 BTC for the Gelephu Mindfulness City development project, a commitment that was worth about $860 million at the time. The country’s bitcoin holdings have been tracked by Arkham Intelligence, a data analytics firm that attributes wallets to DHI based on public blockchain data and AI‑driven analysis.

What Happened

Arkham’s data show that DHI‑tagged wallets moved approximately $207 million in bitcoin out of the country this year alone to various exchanges and OTC trading firms. Holdings in these wallets fell from roughly 13,000 BTC in October 2024 to about 3,100 BTC by the end of the week, a value of $252 million as of Friday evening India time. Arkham estimates that if the current pace continues, Bhutan will have sold all remaining bitcoin by October 2026. Some of the outflow destinations are wallets previously linked to Galaxy Digital and OKX, exchanges typically associated with sales rather than internal transfers.

When asked about the outflows, DHI CEO Ujjwal Deep Dahal replied that he does not recall the last time the fund sold any BTC. A separate reply from the division stated that their statement stands and nothing more to add. DHI did not confirm or deny the specific wallet movements, nor did it confirm the amount of bitcoin currently held. The firm also did not address whether the country still holds approximately 13,000 BTC if the sales had not occurred.

Arkham has tracked these wallets as belonging to DHI for years, and the Bhutanese government has not previously disputed the attribution. Arkham notes that when an entity sends assets to an exchange or OTC firm, the typical purpose is to exchange those assets. However, a source close to one of the trading firms that received bitcoin from Bhutan‑tracked wallets confirmed that no sales have taken place recently, suggesting the movements could be for custody, collateral, lending, or other non‑sale arrangements.

CoinDesk reported in March that Bhutan may have ceased mining operations entirely, with no significant inflows to its known wallets in over a year. Despite the lack of new mining revenue, the country still holds an unrealized profit of roughly $754 million on its remaining bitcoin position. DHI’s Dahal said the country had been “fortunate this year” with early and consistent rainfall, implying continued hydroelectric generation.

Market & Industry Implications

  • Bhutan’s reported outflows reduce the amount of state‑held bitcoin available for future development projects, potentially impacting the Gelephu Mindfulness City pledge.
  • The dispute underscores the difficulty regulators face in verifying state‑owned crypto holdings, especially when wallets are attributed through AI and public data rather than direct confirmation.
  • If the outflows are indeed sales, Bhutan’s bitcoin holdings would fall below the 10,000‑BTC pledge, affecting its credibility as a state‑backed crypto adopter.
  • Conversely, if the transfers are non‑sales, the market may view Bhutan’s bitcoin position as more stable, but the lack of transparency could still raise concerns among investors and analysts.

What to Watch

  • Any official statement from DHI clarifying the nature of the wallet movements and confirming current holdings.
  • Arkham Intelligence’s future reports on the pace of outflows, particularly if the projected October 2026 sell‑off timeline changes.
  • Updates on Bhutan’s mining operations, especially any resumption of mining that could generate new inflows.
  • Market reactions to the Gelephu Mindfulness City pledge, including any adjustments to the 10,000‑BTC commitment.