The Royal Government of Bhutan has transferred 175 BTC worth about $11.85 million, according to blockchain data tracked by Arkham Intelligence. The movement adds to a pattern of periodic Bitcoin transfers linked to the country’s state-backed crypto strategy.
Onchain records show that the coins left a wallet associated with Bhutan’s sovereign investment arm, Druk Holding & Investments, and moved to a Pay-to-Witness-Public-Key-Hash address that had previously received funds from the same source.
The transaction occurred on March 9 and followed a small test transfer of 0.0001 BTC, a precaution commonly used before larger blockchain transactions.
Blockchain trackers show the 175 BTC remains at the destination address as of the latest block data.
BHUTAN IS SELLING BITCOIN pic.twitter.com/lrYWlaHhZU
— Arkham (@arkham) March 9, 2026
Wallet transfers revive after a quiet period
The latest move follows several previous transfers tied to Bhutan’s Bitcoin treasury operations.
Last month, Bhutan moved 184 BTC to the same address. That earlier transfer later flowed to a third wallet that has accumulated about 1,910 BTC since 2024. The wallet currently holds 126 BTC after several outgoing transactions.
Arkham addressed Bhutan’s activity in a post on X and described a consistent pattern in the government’s treasury operations.
"Bhutan periodically sells portions of its Bitcoin in clips of $5 million to $10 million."
The analytics firm also noted that a similar transfer in February preceded a sale of roughly $7 million in Bitcoin executed with trading firm QCP Capital.
Transfers to market makers or exchanges often precede liquidity operations. However, blockchain activity alone does not confirm whether Bhutan plans an immediate sale or simply repositioned funds between treasury wallets.
Sovereign Bitcoin reserves remain substantial
Despite periodic transfers, Bhutan still holds a large Bitcoin reserve compared with most nation-states.
Arkham estimates that the country holds roughly 5,400 BTC across its tracked wallets. At current prices, the holdings carry a market value near $372 million.
The reserve ranks among the largest sovereign Bitcoin holdings globally. The United States remains the largest government holder with more than 328,000 BTC in reserve.
Bhutan also maintains smaller crypto holdings beyond Bitcoin. Arkham data shows about 28 Ether held in wallets connected to Druk Holding & Investments, along with minor positions in other digital assets.
A mining strategy powered by hydroelectric energy
Bhutan’s Bitcoin strategy differs from most government crypto holdings. Several countries obtained Bitcoin through asset seizures linked to criminal investigations. Bhutan built most of its reserves through mining.
The country launched state-backed Bitcoin mining operations in 2019. The initiative relies on hydropower infrastructure that generates surplus electricity during certain seasons.
Prime Minister Tshering Tobgay explained the approach during an earlier interview with Al Jazeera. Summer water flow increases electricity generation across Bhutan’s hydroelectric plants. That surplus energy allows the government to operate mining facilities without heavy strain on the domestic power grid.
Mining production created a large sovereign crypto reserve over time. Arkham estimates Bhutan accumulated roughly 13,000 BTC through mining activity before later treasury adjustments reduced the balance.
Mining economics shifted after the 2024 halving
The Bitcoin network halving in April 2024 altered the economics of global mining operations.
Block rewards fell to 3.125 BTC, which raised production costs across the industry. Several mining firms redirected computing resources toward artificial intelligence or high-performance computing workloads after the reward reduction.
Bhutan’s mining operations also faced a more difficult cost environment after the halving. Production efficiency declined as electricity, hardware, and operational expenses rose relative to the new reward structure.
Those conditions coincided with several sovereign Bitcoin transfers over the past year.
Bitcoin funds support government programs
Revenue generated from Bitcoin has played a role in Bhutan’s public spending.
Prime Minister Tobgay confirmed in a previous interview that proceeds from crypto reserves supported public services and development programs. Funds contributed to healthcare initiatives, environmental projects, and government salaries.
Civil servant pay increases and infrastructure investments also benefited from Bitcoin-backed financing during periods when tourism income slowed.
These treasury decisions place Bhutan among a small group of countries that treat Bitcoin as an active sovereign asset rather than a passive reserve.
Onchain clues leave room for multiple interpretations
The latest 175 BTC transfer does not confirm a specific treasury action.
Blockchain data provides only partial visibility into government financial decisions. The movement may signal preparation for liquidity, internal wallet restructuring, or a future sale.
Recent transfers also pushed Bhutan’s total Bitcoin movements in 2026 above $40 million, according to Arkham estimates.
The country’s crypto reserves remain closely watched by traders and researchers. Bhutan built its holdings largely outside the public spotlight, and each wallet movement often triggers speculation about potential treasury activity.
For now, the blockchain only confirms that the coins moved. The government has not issued a public statement that clarifies the purpose of the latest transfer.
Oleksii Shumak
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