Bhutan Denies Selling 13,000 BTC from Its Bitcoin Reserve

Druk Holding and Investments (DHI), Bhutan's sovereign fund, has officially denied reports suggesting that the kingdom has sold a portion of its Bitcoin reserves. This statement follows claims from Arkham Intelligence that Bhutan owned around 13,000 BTC at its peak in October 2024. Currently, the fund's wallet is said to contain 3,121 BTC.

The DHI representative stated, "I don't recall the last time we sold any Bitcoins," but did not provide details regarding the movement of funds or the remaining cryptocurrency held by the government. While the DHI acknowledged ownership of the flagged addresses, it remained silent on the specifics of any transactions.

Recent transactions have involved moving coins to wallets associated with centralized exchanges and trading firms like OKX and Galaxy Digital. An analyst from Arkham indicated that these actions likely suggest sales, but confirmed the inability to verify this definitively.

Bhutan's Bitcoin reserve has been primarily built through mining operations powered by excess hydroelectric energy, with the government maintaining at least four active mining sites. However, recent reports indicate that inflows to the national fund have ceased, prompting speculation about a potential halt in mining due to decreased profitability.

Despite this, DHI expressed optimism about the current hydroelectric conditions, citing favorable rains that have allowed for high-capacity operations. The organization also highlighted ongoing upgrades to their equipment to enhance competitiveness in the mining sector.

In a related development, Bhutan's special economic zone in Gelephu has implemented a new streamlined licensing process for cryptocurrency businesses, aiming to foster growth in the sector.