• Bhutan's crypto reserve is shrinking rapidly — the country's authorities transferred another $34 million worth of Bitcoin to Binance.
• According to experts, the state's reserves have lost more than 10,000 BTC over the year. 
• Some analysts and traders view the country's actions as an additional source of pressure on the Bitcoin market.

Addresses linked to the government of Bhutan have transferred 533.2 BTC worth around $34.5 million to the Binance crypto exchange. This was reported by EmberCN on-chain analysts. 

According to analysts, since June 2025 Bhutan has sold off approximately 10,451 BTC for a total of around $979 million. The average sale price was $93,738 per coin.

After the latest transfer, the country is estimated by experts to still hold around 1,750 BTC worth approximately $113 million.

Reserves shrank after the mining program ended

According to EmberCN, in early 2025, when state Bitcoin mining operations effectively ceased, the country's reserve reached around 12,200 BTC. Since then the government has gradually been reducing its holdings. 

Bhutan drew the attention of the crypto community back in June last year, when it entered the top three states with the largest Bitcoin holdings. According to Arkham Intelligence, the country then held a crypto reserve worth around $1.3 billion, which amounted to nearly 40% of its GDP.

Unlike the United States or other states that acquired crypto assets through confiscations, Bhutan built its reserve through its own mining. The country began developing mining infrastructure back in 2020, using surplus hydropower.

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The market debates the consequences of Bhutan's sales

The transfer of another 533.2 BTC to Binance sparked active discussion in the crypto community on X. Some market participants link Bhutan's activity to the overall deterioration in market sentiment amid uncertainty over the monetary policy of the US Federal Reserve, institutional capital flows and the moves of large Bitcoin holders.

One analyst noted:

"Bhutan has resumed selling Bitcoin. This is happening at a moment when BTC is already under pressure due to the Federal Reserve's latest decisions and growing uncertainty in global markets."

In his words, sales by states, institutions and other large holders could increase volatility and raise the risk of a deeper correction.

A similar view is held by on-chain analyst Khaled Arnaout, who stated that "Bhutan is liquidating its Bitcoin reserves."

He pointed out that the country's holdings shrank from around 13,390 BTC in October 2024 to about 2,700 BTC, and that in 2026 alone more than $250 million worth of assets was moved to exchanges and other platforms.

In addition, some commentators criticized the earlier narrative of Bhutan as one of the most successful examples of state Bitcoin accumulation.

The author of the BitMart Intern account wrote:

"For 12 months the crypto community called Bhutan the smartest state in the crypto industry. They sold 10,451 BTC at a price above the current one, still hold 1,750 BTC and have just transferred another 533 BTC to Binance. If you used Bhutan as proof that states simply accumulate Bitcoin, then the arithmetic now looks different."

At the same time, another part of the market does not consider the sales a negative signal. Supporters of this view recall that Bhutan mined most of its Bitcoin itself thanks to cheap hydropower, which means the current sales are effectively profit-taking.

The Market Read analysts noted that countries with surplus energy resources are increasingly using Bitcoin mining as a tool for building up state reserves.

In their view, the example of Bhutan, as well as Oman, El Salvador and Ethiopia, points to the emergence of a new trend — competition between states in the field of sovereign Bitcoin mining.

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Sales have continued since the start of 2026

The latest transfer was a continuation of a series of operations that analysts have been recording throughout the year.

In February 2026, government-linked addresses moved 284.8 BTC worth more than $22 million amid a falling crypto market and rising mining costs. At that point the country dropped to seventh place among governments by Bitcoin reserve size.

In March, Bhutan's authorities moved another 973 BTC worth around $72.3 million for a probable sale. By then, more than $110 million worth of Bitcoin had already been withdrawn from state wallets since the start of the year.

In April, Arkham Intelligence analysts recorded a transfer of 319.7 BTC worth approximately $22.8 million. It was reported at the time that the country's reserve had shrunk by almost 70% relative to its peak values.

In May, the Arkham platform stated that since July 2025 Bhutan-linked wallets had transferred around $1 billion worth of Bitcoin to exchanges and trading venues. At the same time, the state investment fund Druk Holding and Investments (DHI), which manages the country's reserves, denied selling the assets.

The fund stated that it "did not recall" any operations to sell the leading cryptocurrency, despite blockchain analytics data on a substantial reduction in holdings.

Despite the active reduction of reserves, Bhutan continues to develop its cryptocurrency and digital initiatives. In late 2025, the country announced its intention to allocate up to 10,000 BTC to the development of a special administrative zone — the "mindfulness city" of Gelephu (Gelephu Mindfulness City).

In addition, the authorities launched a residency program for "digital nomads" in partnership with NomadClub, hoping to attract tech specialists, entrepreneurs and representatives of the creative industries to the country.

Source: Incrypted