Bhutan sells 738 BTC worth $44.8M as sovereign reserve drawdown continues

Wallets linked to Bhutan's sovereign fund moved 738 bitcoin worth $44.8 million on June 6, extending a months-long drawdown of state-controlled reserves.

The transfers were managed through Druk Holding and Investments, the commercial and investment arm of the Bhutanese government, according to Arkham Intelligence data tracked by on-chain analysts.

The June 6 movement included tranches of 364.984 BTC and 188.558 BTC, with cumulative outflows exceeding $67 million in 24 hours. Bhutan's holdings have fallen from roughly 13,000 BTC to a few thousand over the past 12 to 18 months, with estimated 2026 disposals totaling between $200 million and $230 million.

The sales are linked to funding needs for the Gelephu Mindfulness City, a flagship special economic zone anchoring the country's long-term development. Bhutan has routed sales through over-the-counter channels to avoid visible downward pressure on spot prices, though the steady drawdown has drawn scrutiny as bitcoin traded near $60,000.

The transfers follow a pattern of mid-sized tranches rather than single large liquidations, suggesting coordinated treasury planning rather than reactive selling. Earlier snapshots showed multiple outbound movements totaling approximately 1,095 BTC across varying sizes.

Bitcoin traded near $59,100 after falling on weaker U.S. jobs data before recovering above $60,000. Analyst Michaël van de Poppe noted the daily relative strength index reached its lowest level since the COVID-19 crash, though he said conditions may still allow further downside. Support levels were identified between $55,000 and $54,000, with Polymarket traders assigning an 82% probability of a move toward $55,000.

Sovereign selling in context

Bhutan's drawdown comes as institutional bitcoin positioning shows a sharp divergence. Hedge funds dumped 31,400 BTC from spot ETF holdings in the first quarter, a 39% reduction, according to CoinShares' analysis of 13F filings. Banks did the opposite, adding 7,800 BTC and more than doubling their positions, with JPMorgan adding approximately 3,000 BTC and Wells Fargo picking up around 4,000 BTC.

Total professional-investor holdings in U.S. spot bitcoin ETFs fell from 313,000 BTC to 261,000 BTC during the quarter, a 17% decline. In dollar terms, the value dropped 35% to $17.8 billion, partly reflecting bitcoin's 22% price decline over the same period.

For Bhutan, the open question is how much further the government intends to trim its reserve. If the outflow pace holds, the kingdom's sovereign bitcoin experiment could shift from accumulation to deployment, turning mined bitcoin into infrastructure funding without rattling the market it helped pioneer.

This article is for informational purposes only and does not constitute investment advice.