Contents
TLDR
- On Monday, Bhutan transferred 175 Bitcoin valued at $11.85 million from its sovereign reserves, as tracked by Arkham, a blockchain intelligence platform.
- The nation’s Bitcoin reserves have 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 transactions directed to QCP Capital, a digital asset trading firm.
- The sovereign wealth fund Druk Holding and Investments oversees these assets, which were accumulated via hydropower-based mining operations with minimal production costs.
- Last December, the kingdom announced plans to allocate as many as 10,000 BTC toward financing Gelephu Mindfulness City, a planned special economic zone.
The small Himalayan nation of Bhutan has been methodically reducing its sovereign Bitcoin reserves during the opening months of 2026, with on-chain analytics revealing a deliberate liquidation strategy.
According to blockchain tracking data, Druk Holding and Investments—the government’s investment vehicle—transferred 175 Bitcoin valued at $11.85 million on Monday to a wallet that previously received 184 Bitcoin during February.
The February destination address subsequently forwarded its assets to another wallet, which has accumulated 1,910 Bitcoin since 2024.
Blockchain analytics provider Arkham Intelligence, which monitors these transactions, reports that Bhutan has liquidated approximately $42.5 million in Bitcoin and USDT from its treasury during 2026.
During February, four distinct transfers occurred: the 184 Bitcoin movement, two separate transactions to QCP Capital totaling roughly 200 Bitcoin worth approximately $15 million, and a $1.5 million USDT transfer directed to a Binance-associated wallet.
Arkham observed that previous Bitcoin movements of comparable magnitude—specifically in February—corresponded with a $7 million transaction involving QCP Capital.
The consistent pattern of transfers to identical counterparties in comparable amounts suggests an organized treasury management strategy rather than emergency liquidation.
How Bhutan Built Its Bitcoin Stack
Bhutan launched government-backed Bitcoin mining operations in 2019, utilizing predominantly surplus hydroelectric power generated from its mountainous river systems.
By the conclusion of 2024, the nation had amassed approximately 13,000 Bitcoin, positioning it 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, profitability margins compressed and accumulation rates diminished.
Since Bhutan produced its Bitcoin using excess renewable energy, its acquisition cost approaches zero—ensuring every liquidation generates pure revenue, contrasting sharply with corporate entities that purchased at prevailing market rates.
What Bhutan Is Doing With the Money
In a March 2025 conversation with Al Jazeera, Bhutanese Prime Minister Tshering Tobgay revealed that Bitcoin sale proceeds have financed healthcare initiatives, environmental conservation programs, and compensation for government employees.
During December 2025, Bhutan unveiled its national Bitcoin Development Pledge, earmarking up to 10,000 BTC to support Gelephu Mindfulness City, a proposed special economic zone designed to incorporate digital assets as core financial reserves.
The Numbers Today
Bhutan’s current Bitcoin holdings stand at approximately 5,400 Bitcoin, ranking it seventh globally among nation-state holders.
The United States maintains the world’s largest sovereign Bitcoin reserve with 328,372 Bitcoin, valued at nearly $22 billion.
Bhutan’s position, which peaked above $1.5 billion when Bitcoin approached $119,000, now stands at roughly $374 million with Bitcoin trading around $69,000.
Druk Holding and Investments has not issued responses to media inquiries.
