What’s Behind the Sudden Government Sell-Off?

Key Takeaways:

• Bhutan transferred over $38.5 million in Bitcoin to Binance, strategically selling 350.74 BTC across 10 days as prices hit all-time highs.
• With 11,711 BTC worth $1.3 billion still in reserve, Bhutan remains one of the largest sovereign holders of Bitcoin, signaling long-term commitment.
• Backed by clean energy and policy foresight, Bhutan’s Bitcoin moves reflect profit-taking and treasury optimization, not panic.

As Bitcoin crossed the $112,000 mark for the first time in history, the Kingdom of Bhutan made a bold move. Its sovereign wealth fund quietly transferred hundreds of Bitcoin to Binance, sparking global debate. Is this a sell-off or a masterclass in digital asset strategy?

Bitcoin in Bhutan: How Much Does This Country Hold?

While most governments are still debating crypto regulation, Bhutan has already built one of the world’s largest sovereign Bitcoin portfolios, now worth over $1.3 billion. According to Arkham Intelligence, the Royal Government of Bhutan, through Druk Holding & Investments (DHI), holds about 12,000 BTC, as well as smaller reserves of Ethereum, BNB and Polygon.

Since 2019, the country has mined or otherwise acquired more than 13,000 BTC, thanks in part to the nation’s ample hydroelectric power, which it has used to run power-efficient mining operations. Whereas for other nations mining is either banned or heavily restricted and regulated because of environmental concerns, Bhutan took crypto on board as one of the pillars of a green development strategy.

The turning point came in 2023 when Bhutan teamed up with Singapore’s Bitdeer to create a 600-megawatt mining center in Gedu to offset a failed $1 billion infrastructure scheme. Today the site is a large contributor to Bhutan’s national crypto reserves and also exports hash power to the global market.

From Secrecy to Strategy

For years, Bhutan’s Bitcoin involvement flew under the radar. But recent on-chain data shows the kingdom is not only holding but actively managing its crypto portfolio, adjusting to market conditions like any seasoned investor.

Between July 3 and July 10, 2025, Bhutan’s overall portfolio value jumped from $1.26B to $1.304B, driven by Bitcoin’s rally. Despite transferring over 213 BTC worth $23.73M to Binance during that period, the total holding remained the same, indicating internal wallet reshuffling or freshly mined assets.

Why Did Bhutan’s Government Decide to Sell Bitcoin?

Bhutan’s actions may look abrupt, but they align with four clearly identifiable motives:

1. Bitcoin Hits an All-Time High

When Bitcoin climbed to more than $112,000, Bhutan cashed in. Large volumes moved to the hub and the stress they caused, are indicative of panic taking profits, not dumping. That’s a far cry from the last time Germany sold BTC at $53,000, an amount that their treasury now knows it missed out on $2 billion worth of gains.

Bhutan, by contrast, sold at the top. Opportunism like this is not just the result of good luck, but of market intelligence and strategizing.

2. Funding National Projects

Bhutan’s digital gold isn’t hoarded, it’s reinvested. Proceeds from recent sales are likely being redirected to infrastructure, education, and healthcare initiatives. This follows a pattern seen in past transfers, where BTC liquidations coincided with budget cycles and local project launches.

This model, convert BTC gains into tangible public value, makes Bhutan one of the few nations using cryptocurrency as an operational asset, not just a speculative one.

3. Treasury Diversification and Liquidity

Moving BTC on to Binance means that Bhutan is hedging itself. It can reallocate into BTC or make a stablecoin or fiat hedge with perpetual contracts to remove the risk of market fluctuations. Now that crypto accounts for more than 40% of the size of Bhutan’s GDP, managing risk is crucial.

Read More: Bhutan Secretly Mines $1.3B in Bitcoin—Now Holds Nearly 40% of Its GDP in BTC

These are the actions that suggest the presence of a well-tailored treasury management system (as large financial institutions do, but being employed in a national context in Bhutan).

4. Preparing for Blockchain Ecosystem Development

The country is not only storing or selling crypto, it’s building an ecosystem around it. Bhutan has launched crypto tourism pilot programs through partnerships with Binance Pay and DK Bank, allowing over 100 local merchants to accept digital payments.

Read More: Crypto Travel Skyrockets: 80% of $100M+ Bookings on Travala Paid with Digital Assets

In addition, Gelephu Mindfulness City, a new economic zone, is incorporating BTC, ETH, and BNB into its official reserves. Bhutan’s crypto sales could be fueling the foundational infrastructure for this next-gen smart region.

How the Sale Was Executed

Rather than a bulk offload, Bhutan’s BTC was moved to Binance in 1worth $23.73 million, were transferred in several transactions. The largest, $23.18 million, landed just two hours before the market’s daily close.

Arkham Intelligence confirms that this is part of a multi-week pattern. Since June, Bhutan has sold at least 1,696 BTC at an average of $81,999, capitalizing on rallies and converting gains.

Critically, even after these sales, Bhutan still holds 11,711 BTC, placing it just behind the U.S., China, and the U.K. in sovereign crypto rankings. This retention confirms that Bhutan is not exiting crypto, it’s evolving how it uses it.

Bhutan’s Smart Money Strategy vs. Other Nations

While Bhutan is praised for its precision, not all governments are managing crypto this well.

• Germany sold nearly 49,858 BTC at $53,000, incurring a $2B opportunity loss.
• El Salvador, on the other hand, has pledged never to sell. While noble in intent, its buy-and-hold-only policy lacks flexibility.

Bhutan sits between these extremes. It mines, holds, and sells selectively, treating Bitcoin as both a long-term reserve and an active funding tool. This model could become a blueprint for smaller nations looking to enter the digital economy without risking financial stability.

What’s Next for Bhutan’s Bitcoin Policy?

Bhutan’s strategy is far from over. As market observers await the next move, several possibilities emerge:

• Continued selling at price peaks, especially if BTC approaches the $120K–150K range forecasted by analysts.
• Expansion of blockchain-powered services like tourism payments, digital identity, and government finance.
• Global collaboration with crypto firms looking for green mining partners or regulatory sandboxes.

Bhutan may soon become a regional crypto hub, offering a rare blend of regulatory stability, clean energy, and forward-looking policy.