Bhutan kingdom quietly unwinds 70% of its Bitcoin reserve in 18 months

Bhutan has reduced its Bitcoin holdings by 70%, cutting its balance from about 13,000 BTC to 3,954 BTC since October 2024. In 2026 alone, more than $215.7 million worth of BTC has moved out of the kingdom’s holding addresses. At the same time, Bhutan’s last Bitcoin mining inflow above $100,000 was recorded more than one year ago.

Steady outflows and slowing mining

The sell-off traces back to October 2024, when Bhutan held roughly 13,000 BTC. Arkham Intelligence data indicates a steady, methodical drawdown rather than a single liquidation event. Over $215.7 million in BTC has left Bhutan’s holding addresses in 2026, with some outflows routed to unlabeled wallets and others sent to addresses linked to Galaxy Digital and OKX.

The transfers also show signs of direct market selling. In one recent transaction, about 319.7 BTC—worth $22.68 million—moved to two separate addresses in a single transfer.

Mining operation appears to have slowed

Bhutan’s Bitcoin reserve was originally built through a hydropower-backed domestic mining operation run by Druk Holding and Investments. However, Arkham data shows no mining inflow exceeding $100,000 for more than a year.

The shift suggests the economics of mining have deteriorated for the operation. Bhutan’s mining activity benefited when network difficulty was lower and Bitcoin traded above $90,000. With Bitcoin now around $71,000, difficulty at all-time highs, and post-halving block rewards reduced to 3.125 BTC, margins have compressed.

The article notes that selling hydropower directly to India may now offer more predictable revenue than mining Bitcoin.

Broader market context: sovereign selling vs. institutional buying

Bhutan’s retreat contrasts with the broader trend among institutional and sovereign-level holders. Strategy purchased 4,871 BTC for $330 million in a single weekend, bringing its total to 766,970 BTC. US spot Bitcoin ETFs absorbed approximately 50,000 BTC in March alone, indicating continued institutional demand.

The divergence is also highlighted by other activity during the same period. The Ethereum Foundation staked $93 million in ether rather than selling.

Bhutan is described as the only sovereign-level holder visibly reducing its Bitcoin position while others continue to accumulate. Its remaining 3,954 BTC is also noted as smaller than what Strategy typically buys in one week.

Unanswered questions

Bhutan once mined 13,000 BTC directly from its own rivers and mountains. Druk Holding and Investments has not responded to multiple media inquiries, leaving the future of both Bhutan’s Bitcoin reserve and its mining operations publicly unclear.