Bhutan Denies Bitcoin Sale Amidst $1 Billion Reserve Reduction

Recently, the state investment fund of Bhutan, Druk Holding and Investments (DHI), has come under scrutiny following reports of a significant reduction in its Bitcoin reserves. Despite data from Arkham Intelligence, indicating that Bhutan’s Bitcoin reserves have dwindled from 13,000 BTC to approximately 3,100 BTC since October 2024, DHI maintains that it does not recall selling any Bitcoin.

The Allegations: A Closer Look

According to Arkham Intelligence, wallets associated with Bhutan transferred over $1 billion worth of Bitcoin to exchanges and trading platforms since mid-2025. Analysts believe these transactions indicate potential asset sales. However, DHI CEO Ujjwal Deep Dahal commented that he does not recall any recent sales of the cryptocurrency.

Transactions Under Scrutiny

In particular, the year 2026 saw DHI-linked addresses moving roughly $207 million in Bitcoin to crypto exchanges and trading companies. Some of these addresses interacted with well-known platforms like Galaxy Digital and OKX. Such transactions typically suggest intentions to exchange or sell cryptocurrency. However, due to the nature of centralized exchanges operating outside the blockchain, confirming actual sales remains challenging.

Divergent Perspectives on Transaction Intentions

While a source close to one of the trading companies receiving Bitcoins from Bhutan-related addresses claims that no recent sales have occurred, Arkham analysts suggest otherwise. The possibility exists that these movements were not for spot sales but rather related to custodial services or using Bitcoins as collateral for loans.

Potential Implications for the Crypto Market

The situation underscores the complexities surrounding large-scale cryptocurrency transactions and their implications on market dynamics. If such significant reserve reductions indeed translate into sales, they could potentially influence market valuations and investor sentiments.
In conclusion, while DHI has denied any sale activities despite evidence suggesting otherwise from Arkham Intelligence’s findings, this development highlights ongoing tensions between public statements and analytical data within the crypto space. Whether due to custodial shifts or strategic financial maneuvers remains uncertain; however, such news undeniably affects perceptions regarding national digital asset management strategies globally.