Bhutan Offloads $42M in Bitcoin (BTC) as Strategic Reserve Shrinks Over 50%

Key Takeaways

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Blockchain analytics platform Arkham reports that Bhutan transferred 175 Bitcoin valued at $11.85 million from its sovereign treasury on Monday.
The Himalayan nation’s Bitcoin reserves have declined 58% from approximately 13,000 BTC in late 2024 to around 5,400 BTC currently.
Year-to-date 2026 figures show Bhutan has liquidated roughly $42.5 million in Bitcoin and USDT, with multiple transactions directed to QCP Capital.
The nation’s sovereign investment vehicle, Druk Holding and Investments, oversees these assets accumulated via hydroelectric-powered mining operations with virtually no production costs.
Last December, the kingdom committed as many as 10,000 BTC toward financing Gelephu Mindfulness City, a proposed special economic zone.

Throughout the opening months of 2026, Bhutan has methodically liquidated portions of its sovereign Bitcoin treasury, with on-chain intelligence revealing a calculated reduction of the nation’s digital asset reserves.

According to blockchain monitoring, Druk Holding and Investments—the country’s state investment authority—executed a Monday transaction moving 175 Bitcoin valued at $11.85 million to a wallet that had previously received 184 Bitcoin during February.

That February destination wallet subsequently forwarded its contents to yet another address, which has accumulated 1,910 Bitcoin since 2024.

Bhutan just moved another $11 Million of Bitcoin out of its main holding addresses.
The last time they did this was 1 month ago, and they were selling $7 Million of BTC with QCP Capital.
Bhutan periodically sells portions of its Bitcoin in clips of $5-10M, with a particularly… pic.twitter.com/tBuz280bBe
— Arkham (@arkham) March 9, 2026

Blockchain intelligence provider Arkham Intelligence, which monitors these sovereign transactions, reports that Bhutan has liquidated approximately $42.5 million in Bitcoin and USDT from its treasury during 2026.

February witnessed four distinct transfers: the 184 Bitcoin movement, two separate transactions to institutional trading firm QCP Capital totaling roughly 200 Bitcoin worth $15 million, plus a $1.5 million USDT transfer directed to a Binance account.

Arkham observed that when Bhutan previously executed a comparable Bitcoin transfer in February, the transaction correlated with a $7 million trade involving QCP Capital.

The recurring pattern of transactions to identical recipients in similar amounts suggests an organized treasury management strategy rather than emergency liquidation.

Bhutan’s Bitcoin Accumulation Strategy

The kingdom initiated government-sponsored Bitcoin mining operations in 2019, leveraging abundant hydroelectric energy generated by its mountainous river systems.

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

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

Since Bhutan generated its cryptocurrency holdings using excess renewable energy, the production cost approaches zero—resulting in complete profit realization upon sale, contrasting sharply with corporate entities that acquired Bitcoin at prevailing market rates.

Treasury Allocation and Usage

During a March 2025 conversation with Al Jazeera, Bhutanese Prime Minister Tshering Tobgay revealed that Bitcoin sale revenues have financed healthcare initiatives, environmental conservation programs, and government employee compensation.

In December 2025, authorities unveiled a national Bitcoin Development Pledge, allocating up to 10,000 BTC to capitalize Gelephu Mindfulness City, a planned special economic zone designed to utilize digital assets as financial backing.

Current Holdings Assessment

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

The United States maintains the largest government-controlled Bitcoin reserve with 328,372 Bitcoin, valued at nearly $22 billion.

Bhutan’s holdings, which exceeded $1.5 billion in value when Bitcoin approached $119,000, now hold an approximate valuation of $374 million with Bitcoin trading around $69,000.

Druk Holding and Investments has not provided official statements regarding these transactions.