Bhutan's Sovereign Fund Moves $22M in Bitcoin to Market Maker Amid Market Slump
Bhutan's sovereign investment arm has transferred over $22 million worth of Bitcoin to an institutional market maker in the past week, even as the cryptocurrency market extended its recent losses. Blockchain data shows the movements align with the kingdom's established treasury management patterns rather than signaling panic selling.
Blockchain analytics firm Arkham Intelligence identified two outflows from wallets linked to Druk Holding & Investments (DHI), Bhutan's sovereign investment arm. The transactions included 184.03 BTC ($14.09 million) on Wednesday and 100.82 BTC ($8.31 million) five days earlier. The latter was sent directly to addresses associated with Singapore-based crypto trading firm QCP Capital.
"This appears to be a routine treasury operation," said Peter Chung, Head of Research at Presto Research. "The scale is not extraordinary for a sovereign holder. If markets were calmer, this likely wouldn't have drawn attention."
The transfers occurred as Bitcoin fell below $72,000 for the first time since November 2024. The asset is currently trading around $71,300, down over 6% on the day and nearly 44% from its October 2025 all-time high of $126,080.
Market sentiment remains cautious. On prediction platform Myriad, users currently price in an 89% chance Bitcoin will drop to $69,000 before any sustained rally toward $100,000.
"Current volatility reflects broader macroeconomic sensitivity, not crypto-specific weakness," noted Akshat Siddhant, Lead Quantitative Analyst at Mudrex. "Geopolitical tensions are suppressing risk appetite, though ongoing diplomatic channels leave room for sentiment to improve."
Background: A Crypto-Savvy Kingdom
Bhutan began mining Bitcoin around 2019, leveraging its abundant hydroelectric power to accumulate digital assets quietly as part of a long-term economic diversification strategy. Its renewable energy-powered operations have built one of the world's largest sovereign Bitcoin treasuries, only publicly acknowledged in recent years.
The nation has positioned itself as a crypto-forward state, designating Bitcoin, Ethereum, and BNB as strategic reserves for its ambitious Gelephu Mindfulness City project—a Special Administrative Region in southern Bhutan. In December, the kingdom pledged up to 10,000 BTC (worth roughly $1 billion at the time) to fund the development of the economic zone.
Analysis: Structured Products, Not Fire Sales
According to Arkham, the recent outflows are smaller than Bhutan's typical market activity. The sovereign fund has historically sold Bitcoin in tranches of roughly $50 million, with particularly heavy activity recorded in September 2025.
"QCP Capital is known for offering structured crypto products, including options strategies used for yield, accumulation, or hedging," explained Pratik Kala, Head of Research at Apollo Crypto. "While we can't be certain of Bhutan's intent, the transfer to QCP suggests engagement with a structured product rather than a simple spot sale."
Arkham data indicates DHI's tracked wallets hold approximately $412 million in crypto assets, predominantly concentrated in about 5,700 BTC, with minimal exposure to Ethereum or other altcoins.
Reactions & Commentary
Decrypt reached out to representatives for Gelephu Mindfulness City for comment but did not receive an immediate response.
Rajiv Mehta, Portfolio Manager at Himalayan Capital Advisors (Thimphu): "This is prudent treasury management. Sovereign funds rebalance portfolios regularly. Interpreting this as a loss of conviction in Bitcoin misunderstands how institutional holders operate."
Elara Chen, Crypto Economist at Singapore-based FinTech Insights: "The timing is interesting but likely coincidental. Bhutan has been methodical. Sending coins to a firm like QCP could indicate they're setting up hedging instruments or yield strategies to weather volatility."
Marcus Thorne, Independent Crypto Analyst (Blog: 'Hard Fork Herald'): "It's always 'routine' until it isn't. A sovereign nation moving coins to a market maker during a 44% drawdown? That's not rebalancing—that's preparing an exit. They're testing liquidity before larger moves. Retail gets the narrative; institutions get the signal."
Anika Sharma, PhD Candidate in Digital Currency Policy (University of Delhi): "This highlights how sovereign crypto adoption is maturing. Bhutan isn't just HODLing; it's actively managing its treasury with sophisticated counterparts. This is a case study in national blockchain strategy, not a reaction to price swings."