Bhutan Offloads $42M in Bitcoin (BTC) Holdings as National Reserve Shrinks by 58%

TLDR

• The Himalayan nation transferred 175 Bitcoin valued at $11.85 million from its sovereign reserves on Monday, per Arkham Intelligence blockchain tracking data.
• The kingdom’s Bitcoin treasury has declined 58% from approximately 13,000 BTC in late 2024 to about 5,400 BTC currently.
• Throughout 2026, Bhutan has liquidated roughly $42.5 million in Bitcoin and USDT, with several transfers directed to QCP Capital trading firm.
• The nation’s sovereign wealth fund, Druk Holding and Investments, oversees these assets accumulated via hydroelectric-powered mining operations with virtually no cost basis.
• Last December, the country committed up to 10,000 BTC toward financing the Gelephu Mindfulness City special economic zone development.

The small Himalayan kingdom of Bhutan has been systematically liquidating portions of its sovereign Bitcoin treasury during the early months of 2026, with on-chain analysis revealing a methodical reduction of the nation’s cryptocurrency reserves.

Druk Holding and Investments, the state-controlled investment vehicle, transferred 175 Bitcoin valued at $11.85 million on Monday to a wallet address that had previously received 184 Bitcoin during February.

The February receiving address subsequently forwarded its assets to yet another wallet, which has accumulated 1,910 Bitcoin since 2024.

Blockchain intelligence firm Arkham Intelligence, which monitors these transactions, reports that Bhutan has transferred approximately $42.5 million in Bitcoin and USDT from its sovereign holdings throughout 2026.

February witnessed four distinct transfers: the 184 Bitcoin transaction, two separate transfers to QCP Capital trading firm totaling approximately 200 Bitcoin valued at $15 million, and a $1.5 million USDT deposit to a Binance wallet.

Arkham observed that when Bhutan previously moved comparable Bitcoin volumes in February, the transaction was associated with a $7 million sale executed through QCP Capital.

The consistent pattern of transfers to identical counterparties in comparable amounts suggests a deliberate treasury management strategy rather than emergency liquidation.

How Bhutan Built Its Bitcoin Stack

The Buddhist kingdom launched government-backed Bitcoin mining operations in 2019, utilizing nearly exclusively surplus hydroelectric power generated from its mountainous river systems.

By the end of 2024, Bhutan had amassed approximately 13,000 Bitcoin, establishing itself among the world’s most significant sovereign Bitcoin holders.

After the April 2024 Bitcoin halving event reduced mining rewards to 3.125 Bitcoin per block, mining economics deteriorated and accumulation rates decreased.

Since Bhutan acquired its Bitcoin through mining operations powered by excess renewable energy, its acquisition cost is essentially negligible — resulting in pure profit from every sale, contrasting sharply with corporate entities that purchased at prevailing market rates.

What Bhutan Is Doing With the Money

Prime Minister Tshering Tobgay disclosed in a March 2025 Al Jazeera interview that revenue from Bitcoin liquidations has financed healthcare initiatives, environmental conservation programs, and government employee compensation.

In December 2025, Bhutan unveiled a national Bitcoin Development Pledge, allocating up to 10,000 BTC to capitalize Gelephu Mindfulness City, a proposed special economic zone designed to utilize digital assets as monetary reserves.

The Numbers Today

Bhutan’s current Bitcoin holdings stand at approximately 5,400 Bitcoin, ranking it seventh globally among sovereign holders.

The United States maintains the largest government-held Bitcoin position at 328,372 Bitcoin, valued at nearly $22 billion.

Bhutan’s treasury, which peaked above $1.5 billion when Bitcoin approached $119,000, now carries a valuation near $374 million with Bitcoin trading around $69,000.

Druk Holding and Investments has not issued a response to media inquiries.

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