Key Points
- Bhutan transferred 175 Bitcoin valued at $11.85 million from its treasury on Monday, based on tracking by blockchain analytics firm Arkham.
- The nation’s Bitcoin reserves have declined 58% from approximately 13,000 BTC in late 2024 to around 5,400 BTC currently.
- Bhutan has liquidated roughly $42.5 million in Bitcoin and USDT during 2026, with multiple transactions directed to trading firm QCP Capital.
- Druk Holding and Investments, the country’s sovereign wealth fund, oversees these reserves accumulated via hydroelectric-powered mining operations with minimal acquisition costs.
- Bhutan committed up to 10,000 BTC in December to finance Gelephu Mindfulness City, a planned special economic zone.
The Himalayan kingdom of Bhutan has executed a systematic liquidation of its national Bitcoin treasury throughout early 2026, with on-chain data revealing a methodical reduction of the nation’s cryptocurrency reserves.
Monday’s transaction saw Bhutan’s state investment entity, Druk Holding and Investments, transfer 175 Bitcoin valued at $11.85 million to a wallet address that previously received 184 Bitcoin during February.
That February destination wallet subsequently forwarded its contents to a third address, which has accumulated 1,910 Bitcoin since 2024.
Arkham Intelligence, the blockchain monitoring service following these transactions, reports Bhutan has moved approximately $42.5 million in Bitcoin and USDT from its treasury throughout 2026.
February witnessed four distinct transactions: the 184 Bitcoin transfer, two separate sends to trading firm QCP Capital totaling approximately 200 Bitcoin valued at $15 million, and a $1.5 million USDT transfer to a Binance wallet address.
Arkham observed that Bhutan’s previous transfer of comparable size — during February — connected to a $7 million transaction with QCP Capital.
The consistent pattern of transfers to identical counterparties in comparable amounts suggests a deliberate treasury management strategy rather than emergency liquidation.
Bhutan’s Bitcoin Accumulation Strategy
Bhutan launched government-backed Bitcoin mining operations in 2019, utilizing nearly 100% surplus hydroelectric power generated from its mountainous river systems.
By late 2024, the kingdom had amassed approximately 13,000 Bitcoin, positioning it among the world’s largest sovereign cryptocurrency holders.
After the April 2024 Bitcoin halving event reduced mining rewards to 3.125 Bitcoin per block, mining economics shifted and accumulation rates decreased.
Bhutan’s mining operations using excess renewable energy resulted in an effectively zero cost basis — allowing every liquidation to generate pure returns, contrasting with corporate entities that acquired Bitcoin at market rates.
Revenue Allocation Strategy
Bhutanese Prime Minister Tshering Tobgay explained in a March 2025 Al Jazeera interview that Bitcoin sale proceeds have financed healthcare initiatives, environmental programs, and public sector compensation.
December 2025 marked Bhutan’s announcement of a national Bitcoin Development Pledge, allocating up to 10,000 BTC toward financing Gelephu Mindfulness City, a special economic zone designed to incorporate digital assets as financial reserves.
Current Holdings Status
Bhutan’s current Bitcoin position stands at approximately 5,400 Bitcoin, ranking it seventh among sovereign holders globally.
The United States maintains the largest national Bitcoin reserve with 328,372 Bitcoin, valued just below $22 billion.
Bhutan’s holdings, which approached $1.5 billion in value when Bitcoin peaked near $119,000, currently hold a value around $374 million with Bitcoin trading near $69,000.
Druk Holding and Investments has provided no response to comment requests.
