Bhutan has liquidated over $72 million in Bitcoin, marking a significant drop in its crypto reserves as institutional interest in Bitcoin rises.
The Royal Government of Bhutan has recently transferred 973 BTC, equivalent to roughly $72.32 million, to various addresses, based on data provided by Arkham Intelligence.
These transactions occurred on March 17 and 18, with amounts of $27.8 million and $44.44 million being moved from the accounts of Druk Holding and Investments, the sovereign fund responsible for the country's cryptocurrency assets.
Additionally, $1.52 million in crypto assets was sent to QCP Capital, a firm that specializes in institutional trading. Earlier in the month, Bhutan initiated a transfer of approximately $11.85 million to a newly created account that had previously received 184 BTC from the government.
As noted by Arkham, Bhutan has been systematically liquidating its digital assets, typically in batches ranging from $5 to $10 million. Since the start of the year, the country has sold off over $110 million worth of cryptocurrencies.
Decline in Bitcoin Holdings
Druk Holding currently manages 4,453 BTC, valued at approximately $326 million, which represents a significant drop from a peak of over 13,000 BTC in October 2022. This decline suggests a substantial erosion of the country's crypto reserves.
Bhutan has primarily accumulated Bitcoin through mining operations that leverage its abundant hydroelectric resources, starting these efforts in 2019. However, after recent market conditions and a halving event that diminished profitability, it appears the country may have ceased its mining activities, reflected by a year-long absence of substantial incoming transfers.
Growing Institutional Interest
At the same time, Bhutan's sales align with a notable increase in institutional interest in Bitcoin, particularly in the U.S. Spot exchange-traded funds (ETFs) have experienced their longest streak of inflows since October 2025, totaling $199.3 million as of March 17. BlackRock's IBIT product contributed significantly to this influx, which totaled $1.17 billion over the past week.
“Institutional confidence has returned... these are not reactive purchases, but deliberate allocations,” stated Rachel Lucas, an analyst at BTC Markets.
As of now, Bitcoin is trading around $72,900, having seen a slight decrease of 1.6% over the last day. In March, Citigroup also revised its annual price forecast for Bitcoin downward, adjusting it from $143,000 to $112,000.
