Key Highlights
- The small Himalayan nation transferred 175 Bitcoin valued at $11.85 million from its government-controlled wallet on Monday, per Arkham Intelligence data.
- National Bitcoin reserves have decreased 58% from approximately 13,000 BTC in late 2024 to around 5,400 BTC currently.
- Total liquidations of Bitcoin and USDT by Bhutan in 2026 have reached approximately $42.5 million, with some transfers going to QCP Capital.
- The nation’s sovereign investment vehicle, Druk Holding and Investments, oversees these assets accumulated through hydropower-based mining operations with essentially zero acquisition costs.
- Last December, the country committed as many as 10,000 BTC toward financing Gelephu Mindfulness City, a planned special economic zone.
The Kingdom of Bhutan has been methodically liquidating portions of its government-held Bitcoin reserves during the first months of 2026, with on-chain intelligence revealing a systematic reduction of the nation’s cryptocurrency portfolio.
Monday’s transaction saw Druk Holding and Investments, the state investment entity, transfer 175 Bitcoin valued at $11.85 million to a destination wallet that had previously received 184 Bitcoin during February.
That February recipient wallet subsequently forwarded its assets to another address, which has accumulated 1,910 Bitcoin in total since 2024.
Blockchain intelligence provider Arkham Intelligence, which has been monitoring these 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 QCP Capital totaling roughly 200 Bitcoin valued at $15 million, plus a $1.5 million USDT deposit to a Binance-linked wallet.
Arkham observed that Bhutan’s previous transfer of comparable size in February correlated with a $7 million transaction involving QCP Capital.
The consistent pattern of sending assets to identical recipients in comparable amounts suggests an organized treasury management strategy rather than emergency liquidation.
Origins of Bhutan’s Bitcoin Treasury
The nation initiated government-backed Bitcoin mining operations in 2019, utilizing predominantly surplus hydroelectric power generated from its mountainous river systems.
By the end of 2024, Bhutan had amassed roughly 13,000 Bitcoin, positioning it among the world’s most significant sovereign cryptocurrency holders.
After the April 2024 halving event reduced mining rewards to 3.125 Bitcoin per block, profitability margins contracted and accumulation rates decreased.
Since Bhutan generated its cryptocurrency holdings using excess renewable energy, the effective acquisition cost approaches zero—resulting in pure profit margins on sales, unlike institutional purchasers who acquired holdings at prevailing market rates.
Allocation of Bitcoin Sale Proceeds
Prime Minister Tshering Tobgay stated during a March 2025 Al Jazeera interview that revenue from Bitcoin liquidations has been allocated toward healthcare infrastructure, environmental conservation initiatives, and government employee compensation.
In December 2025, the government unveiled its national Bitcoin Development Pledge, allocating up to 10,000 BTC for development of Gelephu Mindfulness City, a special economic zone designed to incorporate digital assets as financial reserves.
Current Holdings Analysis
Bhutan’s remaining cryptocurrency reserves total approximately 5,400 Bitcoin, ranking it seventh globally among sovereign holders.
The United States maintains the largest government-level Bitcoin reserve at 328,372 Bitcoin, valued at nearly $22 billion.
Bhutan’s position reached a peak valuation exceeding $1.5 billion when Bitcoin traded near $119,000, but currently stands at approximately $374 million with Bitcoin prices around $69,000.
Druk Holding and Investments has not issued responses to media inquiries.
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