Bhutan Bitcoin Sales Raise Questions Over Reserve Use

Bhutan’s latest Bitcoin transfers have raised new questions about how much of its sovereign crypto reserve will remain available for the long term development of Gelephu Mindfulness City, a flagship economic project the country has publicly linked to its mined holdings. Recent reporting said Bhutan moved another 519.707 BTC on March 26, part of a wider March selling pattern that has pushed this year’s outflows above $150 million.

Bhutan steps up Bitcoin transfers

Bhutan’s latest transfer came just hours before reports tied the move to exchange linked addresses. That made it the newest sign that the country is still trimming its Bitcoin position in March rather than holding it unchanged.

The move did not come in isolation. Recent reports linked to onchain tracking show Bhutan also shifted millions of dollars in Bitcoin earlier this month, including larger transfers in mid March. Together, those movements have turned what first looked like isolated activity into a broader liquidation trend.

That matters because Bhutan’s crypto holdings had drawn global attention as one of the world’s most unusual sovereign Bitcoin reserves. The reserve was built through Bitcoin mining powered by excess hydropower, giving the country a rare state backed digital asset position tied to domestic energy production.

Gelephu pledge now faces closer scrutiny

Gelephu entered the discussion because Bhutan’s own pledge page says the Bitcoin reserve was created as a long term national asset and was meant to support the growth of Gelephu Mindfulness City. The page says the Bitcoin is not being held for speculation and instead is being set aside for national development over time.

As a result, the latest sales have created a clear tension between that long term message and the current pace of drawdowns. Analysts and market commentators now argue that continued selling could weaken the original funding narrative around Gelephu, especially if the reserve keeps shrinking. Still, Bhutan has not said the project is paused or under review.

The broader Gelephu project also extends beyond Bitcoin alone. Brookings described it as part of a wider Bhutan growth strategy built around hydropower, tourism, crypto, and a new urban development model. That means the city is not dependent on one asset only. However, the faster Bhutan sells Bitcoin, the more attention will shift to whether the reserve can still play the role officials described.