Bhutan Bitcoin Reserves Drop 70% as Mining Questions Grow

Arkham-tracked Bitcoin wallets linked to the Royal Government of Bhutan have declined from a peak of roughly 13,295 BTC in October 2024 to 3,654 BTC as of April 2026, a compression of more than 70%. The drawdown has fueled speculation that Bhutan’s sovereign mining experiment may be winding down, but recent disclosures from the IMF and Bitdeer complicate that narrative considerably.

Arkham-Tracked Bhutan Bitcoin Reserves Have Compressed Since the 2024 Peak

On September 17, 2024, Arkham Intelligence disclosed that wallets attributed to the Royal Government of Bhutan held just over 13,000 BTC worth $764 million. Arkham tied the holdings to government-funded mining operations reportedly active since 2019.

From the September 2024 Baseline to the October 2024 Peak

Cointelegraph reported on March 18, 2026, citing Arkham data, that Bhutan’s reserve had peaked at approximately 13,295 BTC in October 2024. By the time of that report, tracked holdings had already fallen to more than 4,400 BTC after a 973 BTC transfer.

The April 2026 Balance: 3,654 BTC

On April 9, 2026, Cointelegraph reported that a Bhutan-linked wallet had transferred roughly 319 BTC. Total outflows since late October 2024 exceeded 9,000 BTC, leaving 3,654 BTC in Arkham-tracked wallets.

These figures refer exclusively to wallets Arkham has attributed to Bhutan. They do not represent officially disclosed national reserves, and Bhutan has never publicly confirmed or denied Arkham’s estimates.

Why Bhutan’s Apparent Sell-Off Is Still Not Fully Confirmed

The roughly 70% decline in Arkham-tracked balances has been widely framed as a sell-off. However, according to unconfirmed reports, no official statement from Bhutan or Druk Holding & Investments has confirmed that the outflows were outright sales rather than internal treasury movements or transfers to wallets not yet identified by Arkham.

What Is Confirmed Versus What Remains Inferential

Confirmed: Arkham-tracked wallet balances dropped from approximately 13,295 BTC to 3,654 BTC between October 2024 and April 2026. Confirmed: multiple outbound transfers occurred, including a 973 BTC and a 319 BTC movement.

Not confirmed: whether the transfers were exchange deposits, OTC sales, or reclassifications to new wallets outside Arkham’s tracking scope. The IMF noted in its December 2025 Bhutan Article IV staff report that Bhutan does not publicly disclose its crypto holdings and warned that some balance declines may reflect movement to unidentified wallets rather than confirmed disposals.

On-chain outflows and confirmed sales are fundamentally different categories. An outflow to a new cold wallet controlled by the same entity would reduce Arkham-tracked balances without reducing actual holdings. Without wallet-level confirmation from Bhutan, the “sell-off” framing remains partially verified at best.

The Mining-Termination Thesis Clashes With IMF and Bitdeer Updates

The decline in tracked reserves has also prompted speculation that Bhutan may have terminated its sovereign mining program. The available infrastructure evidence does not support this conclusion.

The 100 MW Gedu Facility

The IMF said in its December 22, 2025 Bhutan Article IV staff report that a 100 MW mining data center in Gedu became operational in mid-2023. This facility, operated through Druk Holding & Investments’ partnership with Bitdeer, was part of a broader push toward 600 MW of mining capacity.

The 500 MW Jigmeling Facility

The same IMF report stated that a 500 MW facility in Jigmeling had started operations and was expected to become fully operational by October 2025. Bitdeer confirmed on February 10, 2026 that both Gedu (100 MW) and Jigmeling (500 MW) were listed as online in its infrastructure summary as of January 31, 2026.

Two active mining sites totaling 600 MW of capacity, disclosed as online less than three months ago, materially weaken any claim that Bhutan’s mining program has been terminated. Reduced reserve balances do not by themselves prove a mining shutdown; they could instead reflect treasury monetization while mining continues.

What Bhutan’s Bitcoin Reserve Shift Means for Sovereign Mining Strategy

Bhutan’s case is distinct from passive sovereign Bitcoin buyers. Its reserve appears to have been built entirely through mining rather than open-market purchases, a model that ties treasury accumulation to energy costs and hashrate rather than acquisition price.

Arkham attributed the holdings to mining operations active since 2019, and DHI’s partnership with Bitdeer beginning in early 2023 was aimed at scaling capacity toward 600 MW. That infrastructure ambition, combined with the recent drawdown, suggests Bhutan may be pursuing a mine-and-monetize strategy rather than a long-term hold approach. The distinction matters for how institutional observers evaluate sovereign digital asset strategies alongside more conventional treasury instruments.

The IMF noted that Bhutan keeps crypto activity inside a special regulatory sandbox, with crypto on-ramping not allowed nationally outside controlled frameworks. The Fund warned that larger-scale activity will require stronger AML and consumer-protection rules, a constraint that may shape how and where Bhutan can liquidate mined Bitcoin.

This regulatory friction adds context to the reserve drawdown. If Bhutan’s sandbox limits domestic deployment of mined Bitcoin, selling into international markets or through OTC desks may be the primary path for converting mining output into fiscal revenue, a dynamic relevant to ongoing regulatory clarity efforts in other jurisdictions.

What Investors and Policy Watchers Should Monitor Next

The Bhutan reserve story remains open because the core claims, definitive sale versus wallet reclassification and mining continuation versus termination, have not been resolved by any official source.

Balance Transparency

The most important catalyst would be an official statement from Bhutan or DHI confirming the nature of the wallet outflows. Absent that, the next Arkham wallet attribution update could reclassify some outflows as internal transfers, materially changing the 70% figure.

Investors tracking sovereign digital asset flows alongside spot ETF movements should treat Arkham-tracked balances as directional signals rather than confirmed disposal volumes until official disclosure arrives.

Mining-Operations Confirmation

Future Bitdeer operational updates will be the most direct indicator of whether Bhutan’s mining infrastructure remains active. The company’s monthly production disclosures list site-by-site status, making any Bhutan facility going offline immediately visible.

The IMF’s next Article IV consultation with Bhutan will also matter. The December 2025 report provided the most authoritative external assessment of Bhutan’s mining buildout to date, and any revision to facility status or fiscal impact estimates would reshape the narrative.

Sovereign Bitcoin strategy is moving from theoretical to measurable as on-chain tracking tools improve. Bhutan’s case, whether it ultimately proves to be a strategic monetization, a program wind-down, or a tracking artifact, will set expectations for how markets interpret future sovereign mining disclosures.

Bhutan Bitcoin Reserves FAQ

Did Bhutan really sell 70% of its Bitcoin?

Arkham-tracked wallet balances fell from roughly 13,295 BTC to 3,654 BTC, a decline of approximately 72%. However, the “sell-off” framing remains only partially verified. Bhutan has not confirmed that the outflows were sales, and the IMF has warned that some balance declines may reflect transfers to unidentified wallets rather than confirmed disposals.

How much Bitcoin does Bhutan still appear to hold?

As of April 9, 2026, Arkham-tracked Bhutan holdings stood at 3,654 BTC. This figure captures only wallets Arkham has attributed to the Royal Government; actual holdings could be higher if Bhutan controls wallets outside Arkham’s attribution scope.

Has Bhutan’s sovereign mining program actually ended?

Available evidence says no. Bitdeer listed both Bhutan sites, Gedu (100 MW) and Jigmeling (500 MW), as online in its January 31, 2026 infrastructure summary. The IMF’s December 2025 report described both facilities as operational. No official source has announced a shutdown.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.