Bhutan’s sovereign wealth fund denies selling any Bitcoin, even as on-chain data tracked by Arkham Intelligence shows roughly $1 billion in BTC has left wallets attributed to the kingdom since July 2025. Druk Holding and Investments (DHI), Bhutan’s state investment arm, told CoinDesk in an email that it does not recall selling any Bitcoin, despite wallets long tagged to DHI shrinking from about 13,000 BTC in October 2024 to roughly 3,100 BTC as of May 15. At Friday’s prices, the remaining stash is worth about $246 million, leaving Bhutan short of the 10,000 BTC it pledged in December to back its flagship Gelephu Mindfulness City project.
A sovereign wealth fund is a state-owned investment pool that manages a country’s reserves and surplus capital, often holding equities, bonds, and increasingly digital assets such as Bitcoin.
Key takeaways
- Arkham Intelligence tracks roughly $1 billion in Bitcoin outflows from Bhutan-linked wallets since July 2025, with about $207 million moved in 2026 alone.
- DHI holdings dropped from 13,000 BTC in October 2024 to about 3,100 BTC on May 15, a 76% reduction.
- DHI CEO Ujjwal Deep Dahal told CoinDesk: “I don’t recall the last time we sold any BTC.”
- The current balance is below the 10,000 BTC Bhutan pledged in December 2025 to fund Gelephu Mindfulness City.
Published: May 16, 2026 16:00 UTC
What the on-chain data shows
Arkham’s wallet attribution for DHI has stood unchallenged for years, and the firm’s dashboard places current Bhutan-tracked holdings at 3,121 BTC, worth about $246.5 million. Outflows accelerated through 2026, with approximately $207 million in Bitcoin moving from DHI-tagged addresses to centralized exchanges and over-the-counter trading firms including Galaxy Digital and OKX, according to Arkham data cited by CoinDesk.
An Arkham analyst told CoinDesk the on-chain pattern is hard to read any other way. “When an entity sends assets to an exchange or an OTC trading firm, typically the purpose of the transfer is to exchange those assets. Depositing assets to exchanges generally indicates selling activity.” At the current pace, Arkham projects Bhutan’s tracked balance will hit zero by October 2026.
The most recent flagged transaction came on May 12, when 100.44 BTC, worth about $8.2 million, moved to an unlabeled address, per The Block.
What Bhutan is actually saying
DHI’s denial is categorical but narrow. CEO Dahal told CoinDesk via email that he does not recall any recent Bitcoin sales, and the fund subsequently said only that “our statement stands and nothing to add beyond it.” DHI did not dispute Arkham’s wallet attribution, did not confirm current holdings, and did not address the specific destination wallets.
Dahal separately said mining operations remain active, citing strong hydropower output and ongoing rig upgrades. That claim sits awkwardly with on-chain data showing no significant inflows to known Bhutan wallets in over a year, an unusual gap for an active state mining operation.
A source close to one trading firm that received Bitcoin from Bhutan-tracked wallets told CoinDesk no spot sales had taken place recently. That leaves room for transfers to represent custody arrangements, collateralized loans, or OTC structures, any of which DHI could technically categorize as something other than a sale.
Why this matters for sovereign Bitcoin holdings
Bhutan is one of the few governments to disclose direct Bitcoin holdings tied to a state mining program, and it became a case study for sovereign accumulation after a December 2025 pledge of up to 10,000 BTC, worth roughly $860 million at the time, toward the Gelephu Mindfulness City project. The pledge, covered by CoinDesk in December, was framed as a long-term capital base for the new economic hub.
If the Arkham data is correct, the math no longer works. At 3,121 BTC, Bhutan does not have enough Bitcoin remaining to honor the Gelephu commitment at face value, even though the kingdom is still sitting on roughly $754 million in unrealized profit on its remaining position.
Impact and what comes next
For institutional investors and crypto policy analysts, the dispute exposes a transparency gap that has dogged sovereign Bitcoin programs. On-chain attribution from firms like Arkham is treated as primary evidence, yet governments are not obligated to confirm wallet ownership or settlement intent. That ambiguity matters because Bhutan’s case is increasingly cited in debates over how the United States, El Salvador, and other states could manage strategic Bitcoin reserves.
For traders, the question is whether $1 billion of sovereign supply has already cleared the market or whether more is coming. Arkham’s projection of full liquidation by October implies continued selling pressure. DHI’s denial, taken at face value, implies the opposite. Until DHI confirms its current holdings or discloses the structure of the recent transfers, both readings remain live.
Watch for any updated statement from DHI, fresh wallet movements flagged by Arkham, or disclosures from the trading firms named as recipients. The Gelephu Mindfulness City project, which is also rolling out a fast-track crypto licensing regime, gives DHI a strong incentive to clarify whether its Bitcoin pledge is still backed by held coins or by something else.
Frequently asked questions
How much Bitcoin does Bhutan currently hold?
Wallets attributed by Arkham Intelligence to Druk Holding and Investments held about 3,121 BTC as of May 15, 2026, worth roughly $246 million at Friday’s prices. That is down from approximately 13,000 BTC in October 2024.
Did Bhutan actually sell $1 billion of Bitcoin?
Arkham’s data shows roughly $1 billion has moved from DHI-tagged wallets to exchanges and OTC firms since July 2025. DHI denies recent sales but has not disputed the wallet attribution, confirmed current holdings, or addressed the destination wallets, leaving the door open to non-sale interpretations like custody transfers or collateral.
What is Gelephu Mindfulness City?
Gelephu Mindfulness City is a special administrative region in southern Bhutan, spanning about 1,544 square miles, designed as a future financial, tech, and green-energy hub. In December 2025, Bhutan pledged up to 10,000 BTC to back the project’s long-term development.
