Key Takeaways
- • Massive on-chain discrepancy: Arkham Intelligence data shows Bhutan's Bitcoin holdings collapsed from approximately 13,000 BTC (October 2024) to roughly 3,100 BTC as of May 16, 2026—a 76% reduction representing over $1 billion in outflows since July 2025.
- • Official denial without refutation: Druk Holding and Investments (DHI), Bhutan's sovereign wealth fund, stated through CEO Ujjwal Deep Dahal that it does "not recall" selling Bitcoin, but declined to dispute Arkham's wallet attribution, address specific transaction movements, or confirm current holdings.
- • Accelerating depletion trajectory: Arkham's analysis indicates wallet outflows have accelerated through 2026, with approximately $207 million in Bitcoin transferred to exchanges and trading firms in 2026 alone; at current pace, remaining reserves could be fully liquidated by October 2026.
- • Unresolved attribution challenge: DHI did not confirm or deny whether Bhutan still holds the original 13,000 BTC if sales had not occurred, creating ambiguity around wallet ownership, transaction legitimacy, and whether alternative explanations (transfers, consolidation, theft) account for the tracked movements.
- • Sovereign Bitcoin holdings under scrutiny: The situation underscores governance and transparency risks in sovereign cryptocurrency portfolios, as Bhutan (the second nation after El Salvador to formally adopt Bitcoin) faces credibility questions around asset custody and reserve management.
Summary
Bhutan's assertion that it has not sold Bitcoin directly contradicts blockchain analysis tracking major outflows from wallets attributed to the country's sovereign wealth fund. According to Arkham Intelligence, a blockchain data analytics firm, approximately $1 billion in Bitcoin has left Druk Holding and Investments (DHI)-linked wallets since July 2025, with holdings plummeting from roughly 13,000 BTC in October 2024 to approximately 3,100 BTC as of May 16, 2026. This 76% reduction in tracked reserves represents one of the largest documented drawdowns in sovereign cryptocurrency holdings.
When confronted with these on-chain movements, DHI officials responded with qualified denials rather than transparent clarification. CEO Ujjwal Deep Dahal stated via email to CoinDesk that he does "not recall the last time we sold any BTC," a formulation that leaves open multiple interpretations. When pressed specifically about Arkham's tracked wallet movements, DHI's subsequent statement offered only: "our statement stands and nothing to add beyond it." Critically, the fund did not dispute Arkham's attribution of the wallets, did not address the specific transactions, and did not confirm Bhutan's current Bitcoin holdings or whether the kingdom still possesses the original 13,000 BTC allocation.
The pattern of outflows has intensified significantly through 2026, with $207 million in Bitcoin transferred to various exchanges and trading platforms during this year alone, according to Arkham's data. The firm's analysis suggests that if liquidations continue at the current pace, Bhutan's remaining Bitcoin reserves could be entirely depleted by October 2026. The destination wallets—identified as belonging to major exchanges and trading firms—suggest either deliberate sales, collateral transfers, or other forms of reserve mobilization that remain unexplained by official channels.
For institutional investors and portfolio managers monitoring sovereign cryptocurrency adoption, this episode highlights critical governance gaps in national Bitcoin holdings. Bhutan, which positioned itself as the second nation after El Salvador to officially embrace Bitcoin mining and reserve accumulation, now faces credibility challenges regarding asset custody, transaction transparency, and management accountability. The absence of clear confirmation or denial from DHI regarding either the wallet attribution or the transactions themselves creates ambiguity that could extend beyond Bhutan to broader perceptions of sovereign digital asset stewardship globally.
When confronted with these on-chain movements, DHI officials responded with qualified denials rather than transparent clarification. CEO Ujjwal Deep Dahal stated via email to CoinDesk that he does "not recall the last time we sold any BTC," a formulation that leaves open multiple interpretations. When pressed specifically about Arkham's tracked wallet movements, DHI's subsequent statement offered only: "our statement stands and nothing to add beyond it." Critically, the fund did not dispute Arkham's attribution of the wallets, did not address the specific transactions, and did not confirm Bhutan's current Bitcoin holdings or whether the kingdom still possesses the original 13,000 BTC allocation.
The pattern of outflows has intensified significantly through 2026, with $207 million in Bitcoin transferred to various exchanges and trading platforms during this year alone, according to Arkham's data. The firm's analysis suggests that if liquidations continue at the current pace, Bhutan's remaining Bitcoin reserves could be entirely depleted by October 2026. The destination wallets—identified as belonging to major exchanges and trading firms—suggest either deliberate sales, collateral transfers, or other forms of reserve mobilization that remain unexplained by official channels.
For institutional investors and portfolio managers monitoring sovereign cryptocurrency adoption, this episode highlights critical governance gaps in national Bitcoin holdings. Bhutan, which positioned itself as the second nation after El Salvador to officially embrace Bitcoin mining and reserve accumulation, now faces credibility challenges regarding asset custody, transaction transparency, and management accountability. The absence of clear confirmation or denial from DHI regarding either the wallet attribution or the transactions themselves creates ambiguity that could extend beyond Bhutan to broader perceptions of sovereign digital asset stewardship globally.
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