In a strategic move, Bhutan’s state-owned investment arm has been progressively liquidating portions of its Bitcoin reserves, amounting to approximately $42.5 million in BTC and USDT during 2026. According to data from blockchain analytics firm Arkham Intelligence, the Royal Government of Bhutan executed a notable transfer of 175 BTC, valued at $11.85 million, on Monday. This transaction followed a previous transfer of 184 BTC in February to the same address, suggesting a consistent pattern in their liquidity management approach.
The transactions from February alone included multiple transfers totaling around $30.7 million, featuring notable sends to QCP Capital, a trading firm, and a $1.5 million USDT transfer to a Binance hot wallet. This methodical approach indicates that the government is engaging in planned treasury drawdowns rather than making impulsive decisions during market fluctuations.
Bhutan has managed to mine a significant amount of its Bitcoin utilizing surplus hydropower resources, which allows for a near-zero cost basis on its holdings. Each sale thus generates profits for the state. At its peak in late 2024, Bhutan’s Bitcoin stack was about 13,000 BTC. However, that figure has now decreased to approximately 5,400 BTC, marking a 58% reduction in holdings. The decline in Bitcoin’s market price—from around $126,000 at its peak to roughly $69,000 today—has also directly impacted the dollar value of Bhutan’s holdings, which have dropped from over $1.5 billion to nearly $374 million.
Druk Holding and Investments (DHI), which serves as Bhutan’s sovereign wealth fund, is responsible for managing the country’s cryptocurrency assets. This fund oversees state-owned enterprises and stands as the primary financial arm of the government. In a forward-looking initiative, Bhutan announced plans in December to dedicate up to 10,000 BTC to fund Gelephu Mindfulness City, a special economic zone intended to support digital asset management for its financial reserves.
The recent transfers exhibit a consistent pattern, being directed towards the same counterparties in comparable amounts without a clear connection to Bitcoin price movements. This structured strategy further reinforces the view that Bhutan is maintaining a disciplined approach to liquidity management.
Globally, Bhutan ranks as the seventh-largest government holder of Bitcoin, trailing behind the United States, which holds approximately 328,372 BTC valued at nearly $22 billion. Bhutanese Prime Minister Tshering Tobgay has previously articulated the importance of Bitcoin proceeds, emphasizing their vital role in funding public services, which include healthcare, environmental initiatives, and salaries for public sector employees.
The country’s capacity to continue its state-backed mining operations efficiently is sustained by surplus hydropower generated during the summer months. However, since the 2024 Bitcoin halving, which reduced mining rewards to 3.125 BTC, the overall profitability of these mining ventures has diminished, leading to a strategic redirection of some energy resources towards high-performance computing endeavors.
