Bhutan Denies $1 Billion Bitcoin Sell-Off Amid Uncertainty Over Remaining Reserves

The recent claim that Bhutan sold around $1 billion worth of Bitcoin has sparked controversy in the crypto market. According to reports, the Royal Government of Bhutan transferred large amounts of Bitcoin from their wallets to exchanges and trading firms over the past year, leading many traders to assume these movements were sales.

However, Druk Holding and Investments (DHI), the sovereign investment arm of Bhutan, has pushed back against this claim. In an interview with CoinDesk, CEO Ujjwal Deep Dahal stated that he did not recall any Bitcoin sales, leaving the discrepancy between official comments and onchain data unresolved.

The dispute raises questions about what onchain data can and cannot prove. While large transfers of Bitcoin from a sovereign-linked wallet to an exchange or trading firm may suggest possible sales, they do not confirm execution. These movements could also be attributed to other activities such as custody, collateral, structured lending, treasury management, or internal settlement.

The uncertainty surrounding Bhutan's Bitcoin reserves is further complicated by the country's earlier pledge to support Gelephu Mindfulness City with up to 10,000 BTC. This commitment had already put their reserve strategy under scrutiny, and the latest dispute deepens uncertainty around how much Bitcoin remains available for long-term development plans.