The Royal Government of Bhutan has accelerated its divestment from its Bitcoin holdings, transferring 519.707 BTC, valued at approximately $36.75 million, to an external address this week, according to data from Arkham Intelligence. This transaction is part of an intensified sell-off that has seen total outflows exceed $152 million in 2026 alone.
The recent weeks have marked a significant surge in Bhutan’s bitcoin activity, particularly notable for its historical context. Arkham’s data indicates that the prior week was the most eventful in the nation’s bitcoin dealings, with a series of transfers amounting to around $72 million. This includes a notable single transaction of 595.848 BTC, equivalent to $44.44 million, which stands as the largest transfer this year. Additional transfers included 205.53 BTC worth $15.14 million and 150.047 BTC valued at approximately $11.14 million, alongside a smaller 20.506 BTC transfer to QCP Capital’s merchant deposit address, priced at $1.52 million.
Earlier this year, Bhutan executed several significant transactions, moving 184 BTC for $14.09 million in January, followed by a transfer of 100.818 BTC, or $8.31 million, to QCP Capital. In February, another 100 BTC was sent to the firm. The recent weeks suggest a shift in strategy, with the scale of transactions increasing from smaller clips of $5-15 million earlier this year to much larger transfers averaging between $35-45 million.
QCP Capital has emerged as a prominent player in Bhutan’s bitcoin dealings, receiving three separate transfers totaling around $16.6 million this year alone. This repeated engagement points to a potential ongoing over-the-counter (OTC) relationship, indicating structured selling rather than sporadic liquidation.
Bhutan’s Bitcoin portfolio once peaked at approximately 13,000 BTC in late 2024, accumulated over years through state-supported hydroelectric mining, which allows for a near-zero cost basis on the mined assets. Every bitcoin sold translates to profit for Bhutan, whose economy significantly relies on hydroelectric exports to India.
Since the drawdown began post-October 2024, Bhutan’s current holdings have decreased steeply to 4,453 BTC, valued at roughly $315 million. This marks a staggering 66% reduction in their holdings from the peak. The value of the portfolio plummeted from nearly $1.88 billion to its current standing, impacted by both the selling activities and a drop in bitcoin prices from a high of $119,000 to around $70,000.
In December, Bhutan had announced a Bitcoin Development Pledge to allocate up to 10,000 BTC for the development of Gelephu Mindfulness City, a commitment that was worth approximately $860 million at that time. However, with the current holdings now under 4,500 coins, fulfilling this pledge in its original form appears increasingly improbable without a complete reversal of the ongoing sell-off.
CoinDesk has reached out to Druk Holding & Investments, the commercial arm of the Bhutanese government, seeking clarification on these recent transfers and the status of the Gelephu commitment.
