Bhutan cuts Bitcoin holdings again in March with fresh transfers

Bhutan has continued to reduce its Bitcoin exposure in March, moving fresh funds from a state-linked wallet.

Data tracked by Arkham shows the latest transfer took place on Wednesday, adding to a series of transactions that have steadily lowered the country’s holdings since late 2024.

The move highlights how Bhutan is actively managing its digital asset reserves while continuing to position Bitcoin as part of its economic strategy, including mining operations and long-term development projects tied to crypto infrastructure.

Fresh transfers tracked onchain

Arkham data shows a Bhutan government-linked wallet transferred around 519.7 BTC, valued at about $36.7 million, to two separate wallets on Wednesday.

Onchain Lens identified one of the receiving wallets as linked to trading firm QCP Capital.

This marks the third major Bitcoin movement linked to Bhutan in March.

Earlier activity included roughly $72 million transferred across six transactions in the 24 hours leading up to March 18.

Another transfer worth $11.8 million took place on March 9.

The repeated transactions suggest a coordinated pattern rather than isolated activity, with funds being routed through multiple wallets over a short period.

March outflows exceed February activity

The latest transfer adds to a sharper outflow trend compared with February.

During that month, Bhutan moved just over 284 BTC, a smaller volume relative to March’s cumulative activity.

Despite the recent drawdown, the state-linked wallet still holds about 4,453 BTC, valued at approximately $315 million.

This is a notable decline from more than 13,000 BTC held in October 2024, based on Arkham data.

The shift indicates a significant reduction in sovereign Bitcoin reserves over the past few months, even as Bhutan continues to maintain a sizeable position compared with many other countries.

Position among global Bitcoin holders

As of March 12, Bhutan ranked as the fifth-largest country by Bitcoin holdings, according to an Arkham report.

It sits behind the US government, the United Kingdom government, El Salvador, and the United Arab Emirates.

This ranking reflects Bhutan’s early and sustained involvement in the Bitcoin ecosystem, particularly through state-backed mining operations and strategic accumulation over time.

Mining strategy tied to economic goals

Bhutan began adopting Bitcoin mining in 2019, making it one of the earlier sovereign participants in the sector.

The country has since built multiple hydroelectric power facilities along its glacial rivers, allowing it to generate low-cost renewable energy for mining.

In May 2023, its sovereign wealth fund, Druk Holding and Investments, entered a $500 million partnership with Bitdeer to expand mining capacity.

This move aligned with Bhutan’s broader effort to integrate digital assets into its economic model.

The country has also outlined plans to deploy Bitcoin holdings in domestic development.

In December 2025, Bhutan said it would use BTC reserves to support the Gelephu Mindfulness City, a special administrative region under development.

On Jan. 8, 2026, the project announced plans to establish a strategic cryptocurrency reserve.

The reserve is expected to include Bitcoin, Ether, and BNB, signalling a diversified approach to digital assets within Bhutan’s long-term economic planning.