Bhutan is selling Bitcoin. The Royal Government transferred 519.7 BTC, worth approximately $36.75 million, to a Binance deposit address on Wednesday. This move came from Druk Holding and Investments – the country's sovereign wealth fund – and follows a chain of withdrawals that have been occurring for several months.
The remaining Bitcoin holdings currently stand at 4,453 BTC, a sharp drop from the previous peak of over 13,000 BTC . More than two-thirds of the positions have been sold.
Transaction: Confirmation on-chain
Data from Arkham Intelligence shows the transaction was Chia into multiple parts.The funds were transferred to two separate wallets: one linked to the trading company QCP Capital and another directly into Binance's deposit stream.
Transactions that transfer directly to the exchange's deposit address typically indicate an intention to sell immediately or use the asset as collateral, rather than simply for custody transfer.
This is a liquidation event. The market has seen this several times in recent weeks, including a $72 million sell-off last week and $12 million earlier this month. Druk Holding is gradually reducing its exposure as the price fluctuates around $71,100. While some analysts debate the motives, the destination of the funds suggests this is more active profit-taking than a long-term restructuring.
Strategy: From exploitation to profit realization
Bhutan's Bitcoin supply is not purchased on the open market like typical institutions, but is generated through industrial-scale mining using the country's renewable hydropower.This allows Druk Holding to have a cost of Capital of almost zero (excluding infrastructure investment costs), making these BTC sales a net profit for the state budget.
The strategy has changed. From 2022 to the end of 2024, Bhutan was a net accumulator. Now, the country is Vai as a disciplined seller.
Unlike El Salvador , which continues to buy digital assets, Bhutan is converting its surplus digital assets into cash to fund domestic initiatives. Analysts suggest this Capital inflow may be being used for the Gelephu Mindfulness City infrastructure project.
Amidst the changing Vai of Bitcoin and gold in the macroeconomic narrative, Bhutan XEM its BTC holdings simply as a working Capital account.
The market is still absorbing the supply. Despite continuous selling pressure from Bhutan, Bitcoin remains resilient, with volatility signals indicating strong absorption demand. Druk Holding's wallet is currently XEM as an organized source of selling supply. Treasuries are selling while the market remains strong.
