In a significant move within the crypto landscape, Bhutan recently offloaded $22.3 million worth of Bitcoin in two transfers to crypto market maker QCP Capital over the past week. This marks the first wallet activity from the nation in approximately three months, highlighting a notable strategic shift given the backdrop of fluctuating market conditions.
Tracked by blockchain analytics platform Arkham, the first transfer saw 184 BTC valued at $14 million sent on Wednesday, while a prior transfer involved 100.8 BTC worth $8.3 million made last Friday. This activity comes as Bitcoin has dropped below $71,000, with broader market volatility contributing to its decline of over 7% in just 24 hours.
Since reaching a peak of 13,295 BTC in October 2024, Bhutan’s Bitcoin holdings have sharply decreased to around 5,700 BTC, leading it to slip from a higher rank to seventh among nation-state holders of Bitcoin. According to Bitcoin Treasuries data, Bhutan now trails behind the United States, China, the United Kingdom, Ukraine, El Salvador, and the United Arab Emirates.
Bhutan began its foray into Bitcoin mining in 2019 through state-owned Druk Holding and Investments, utilizing its abundant hydroelectric resources to power operations. To date, the nation has accumulated approximately $765 million in Bitcoin since its inception, which it has periodically sold in batches of around $50 million.
Doubling Mining Costs Post-Halving
Following the 2024 Bitcoin halving, the cost to mine a single Bitcoin has doubled. As a consequence, Bhutan’s mining outputs have significantly decreased compared to the 8,200 BTC it mined in 2023, indicating a worrying trend for the country’s Bitcoin production.
The halving event, which cuts mining rewards by half, has made it increasingly expensive for miners to operate, resulting in fewer Bitcoins being earned for the same input of energy and computational power. Before the current period of selling, Bhutan last engaged in heavy Bitcoin sales during mid to late September 2025, indicating a pattern of liquidating crypto assets when necessary.
Market makers like QCP Capital play a crucial role in facilitating liquidity in the markets, which is particularly important for large asset transfers such as those from Bhutan.
Market Context and Holdings
The state of the Bitcoin market is currently precarious, with Bitcoin trading more than 42% below its all-time high of $126,080 reached in October. Recent sell-offs have pushed the price below the $72,000 mark amid a climate of investor uncertainty.
Over the past three months, market sentiment has dipped to lows not seen since mid-2022, driven by geopolitical factors such as uncertainties from US government shutdowns and ongoing trade policy tensions. Additionally, stalling crypto market legislation has left investors grappling with a lack of regulatory clarity.
Although global liquidity remains elevated, sentiment has shifted towards more stable assets, such as gold and silver, as investors seek refuge amidst macroeconomic turbulence. In a shocking statement, US Treasury Secretary Bessent asserted that the government would not “bail out” Bitcoin, further igniting discussions about the role of governmental support in the cryptocurrency ecosystem.
Recent activity has also seen Bitcoin’s network hashrate dip below 1 zetahash per second, as miners disconnect unprofitable machinery. Concerns regarding quantum computing’s potential threat to Bitcoin’s security framework have also surfaced in discussions surrounding the future of the cryptocurrency.
The Bitcoin transferred to QCP Capital included movements to a Binance hot wallet as well as new addresses, signaling potential shifts in liquidity strategies in response to market dynamics. Comment requests sent to QCP Capital and Druk Holding and Investments went unanswered during the time of writing, leaving observers keenly awaiting further developments.
