Key Insights
- •Bitcoin news emerged on Oct. 20 when the Royal Government of Bhutan transferred 121.89 BTC worth $13.5 million to a new wallet, likely for sale on a centralized exchange.
- •The Bitcoin wallet of the Bhutan Government currently holds 6,262 BTC worth $693.5 million, down from an all-time high of over 13,000 BTC reached on Oct. 29, 2024.
- •The sale would not significantly impact the BTC price, as the amount falls below the -2% depth on major exchanges like Binance and Kraken.
Bhutan Government Moves Significant Bitcoin Holdings
The Royal Government of Bhutan has made a notable move in the Bitcoin news landscape by transferring 121.89 BTC, valued at $13.5 million, to a new wallet on October 20. This transaction is widely interpreted as a precursor to selling the cryptocurrency on a centralized exchange, according to insights from the on-chain monitoring profile, Onchain Lens.
Despite the substantial value of the transfer, the amount is considered too small to cause a significant impact on the current Bitcoin price. As of the latest data, the -2% depth for the BTC/USDT trading pair on Binance was reported at $18.4 million by CoinGecko. This indicates that even if Bhutan were to sell its entire $13.5 million worth of Bitcoin in a single order, it would not be sufficient to drive the price down by 2%. The exchange Kraken shows an even larger -2% depth, standing at $31.9 million, further underscoring the limited market impact of this particular transaction.
Sovereign Bitcoin Holdings Decline
The Royal Government of Bhutan's Bitcoin holdings have seen a reduction, with its wallets currently containing 6,262 BTC, which is approximately $693.5 million. The treasury also holds 656 ETH, valued at around $2.6 million, according to data from Arkham. This current BTC balance represents less than half of the wallets' peak holdings, which exceeded 13,000 BTC on October 29, 2024.
Arkham publicly identified wallets associated with the Royal Government and its sovereign investment entity, Druk Holding & Investments (DHI), in September 2024. This identification positioned Bhutan among the leading sovereign holders of Bitcoin globally. Analysis of Arkham's data revealed periodic transfers from these addresses throughout late 2024 and into 2025, suggesting a strategy of balance-sheet management rather than continuous accumulation.
Hydropower-Backed Mining Strategy
Bhutan has approached Bitcoin as a state-level initiative rather than a speculative retail venture. Druk Holding & Investments has been involved in Bitcoin mining since at least 2019. In 2023, DHI formalized a commitment to "green" mining operations through a partnership with Nasdaq-listed Bitdeer. This collaboration aims to capitalize on the nation's surplus hydropower resources to generate foreign currency earnings.
The partnership between Bitdeer and DHI was announced in May 2023, with plans to raise up to $500 million for carbon-free mining operations within Bhutan. Corporate filings from 2025 indicate that the flagship 500-MW Jigmeling site has been progressing through its energization phases. By July, 235 MW of capacity was brought online, and construction was completed by September.
Policy Evolution Towards Special Zones
Bhutan's policy framework regarding digital assets has evolved towards a special-zone model, particularly in early 2025. The Gelephu Mindfulness City special administrative region declared its intention to integrate digital assets, including Bitcoin, into its strategic reserves. This move signifies a forward-looking approach to incorporating new financial technologies into the national economic strategy.
In April, the Royal Monetary Authority outlined a "phased and focused" strategy. This framework restricts mining and exchange activities to entities registered within the Gelephu Mindfulness City structure, while retail access through domestic banks remains limited. Officials have described this development as a strategic policy decision, with reports from April 2025 suggesting that Bhutan views hydro-powered mining as a means to stimulate job creation and enhance foreign-exchange liquidity. Previous reports also indicated that the government sold approximately $100 million in cryptocurrency in 2023 to fund public-sector salary increases.
Risk Management and External Investment
The history of Bhutan's engagement with the cryptocurrency sector includes navigating the crypto credit crisis that spanned 2022 and 2023. Court and bankruptcy records have revealed DHI's previous associations with entities such as Celsius and BlockFi. This period preceded the strategic shift towards transparent, infrastructure-anchored mining operations in partnership with Bitdeer.
In 2024, external capital significantly flowed into Bhutan's key partner, Bitdeer, with Tether investing $100 million. This investment has bolstered the financial depth of the ecosystem surrounding DHI. The operational uptime of mining activities has been influenced by factors such as hydropower seasonality and the ongoing expansion of the national grid. Bitdeer's energization schedule has served as an indicator of the actual hash rate coming online. Ongoing monitoring of wallet activity, as flagged by Arkham, continues to provide near-term signals for treasury management.
The Royal Government of Bhutan's execution of the $13.5 million transfer is consistent with its ongoing approach to balance sheet management. The kingdom continues to maintain its standing as one of the largest sovereign Bitcoin holders, notwithstanding the reduction of its treasury holdings by more than half since October 2024.