Bhutan has embarked on a calculated liquidation of its national Bitcoin reserves at the beginning of 2026, revealing a steady and planned reduction of the Himalayan kingdom’s cryptocurrency holdings.
Recent blockchain data from an analytics firm indicates that on Monday, Bhutan’s state investment arm, Druk Holding and Investments, transferred 175 Bitcoin, amounting to approximately $11.85 million, to a wallet previously associated with other significant transactions.
This February address has a history of activity, having received 184 Bitcoin in an earlier transfer, and further funneling funds to a third wallet that has accumulated a total of 1,910 Bitcoin since 2024.
Arkham Intelligence, the blockchain analytics platform monitoring these shifts, also reported that Bhutan has liquidated around $42.5 million in Bitcoin and USDT throughout 2026.
In February, Bhutan executed multiple transfers, including sending 184 Bitcoin, two transactions to trading firm QCP Capital totaling roughly 200 Bitcoin (worth around $15 million), and a $1.5 million USDT transfer to a Binance wallet.
The methodical pattern of these transfers suggests a strategic treasury drawdown rather than sales driven by market distress, as highlighted by a similar $7 million sale with QCP Capital last month.
How Bhutan Accumulated Its Bitcoin Holdings
The nation initiated state-sponsored Bitcoin mining in 2019, leveraging surplus hydroelectric energy from its mountainous rivers. By late 2024, Bhutan had amassed a formidable stash of approximately 13,000 Bitcoin, positioning it among the largest sovereign holders worldwide.
However, following the Bitcoin halving in April 2024, which reduced mining rewards to 3.125 Bitcoin per block, the profitability of mining began to decline, causing rates of accumulation to slow.
Due to the unique nature of its mining operations, Bhutan’s cost basis for Bitcoin is effectively zero. This structure allows any sale to yield pure profit, setting it apart from other corporate buyers who typically acquire Bitcoin at prevailing market rates.
Utilization of Bitcoin Proceeds
Bhutan’s Prime Minister Tshering Tobgay noted in a March 2025 interview that profits from Bitcoin sales have been allocated towards funding vital initiatives, including healthcare, environmental projects, and salaries for public servants.
In December 2025, Bhutan reiterated its commitment to Bitcoin by announcing a development pledge that earmarked up to 10,000 BTC for the establishment of Gelephu Mindfulness City, a special economic zone intended to leverage digital assets as financial reserves.
The Current Landscape of Bhutan’s Bitcoin Holdings
As it stands, Bhutan’s Bitcoin holdings have dwindled to approximately 5,400 BTC, making it the seventh largest nation-state holder of the cryptocurrency. Comparatively, the United States boasts the largest national Bitcoin reserve, with 328,372 Bitcoin valued at just under $22 billion.
Once valued at over $1.5 billion at its peak, Bhutan’s current reserves now languish at roughly $374 million, as Bitcoin trades near $69,000. The management at Druk Holding and Investments has not responded to requests for comment regarding these developments.
