Bhutan Moves $22M in Bitcoin as Prices Slide and Mining Economics Tighten

Bhutan Transfers $22 Million in Bitcoin

Bhutan has moved more than $22 million worth of Bitcoin from its national reserves, signaling potential selling pressure as crypto markets weaken and mining profitability declines.

Blockchain analytics firm Arkham reported that the Himalayan nation transferred:

• 184 BTC (~$14 million) on Wednesday

• 100.8 BTC (~$8.3 million) last Friday

The combined $22.3 million in Bitcoin was sent to QCP Capital, a crypto market maker.

Transfers to market makers are often interpreted as preparations for selling, as these firms specialize in providing liquidity and facilitating large trades.

Source: https://x.com/arkham/status/2019098198304825581

From Mining Pioneer to Active Seller

Bhutan has been quietly building one of the world’s largest sovereign Bitcoin reserves since launching state-backed mining operations in 2019, powered primarily by the country’s abundant hydroelectric energy.

Since inception, the program has reportedly accumulated about $765 million worth of BTC through mining.

However, the economics have shifted.

According to Arkham:

• The cost to mine 1 BTC has roughly doubled since the 2024 halving

• Output has dropped sharply compared to 8,200 BTC mined in 2023

With higher costs and lower rewards, holding mined coins has become less attractive, prompting periodic sell-offs.

Holdings Drop Sharply

Bhutan’s Bitcoin treasury has shrunk significantly over the past year.

• Peak holdings (Oct 2024): 13,295 BTC

• Current holdings: 5,700 BTC

That decline has pushed Bhutan down to seventh place among nation-state Bitcoin holders, according to Bitcoin Treasuries data.

It now trails:

• United States

• China

• United Kingdom

• Ukraine

• El Salvador

• United Arab Emirates

Arkham noted that Bhutan typically sells in batches of around $50 million, with the last major selling wave occurring in late 2025.

Officials from Druk Holding and Investments, the state entity overseeing the strategy, have not publicly commented on the recent transfers.

Bitcoin Market Conditions Add Pressure

The move comes as Bitcoin faces renewed macro headwinds.

BTC is now trading roughly 42% below its all-time high of $126,080, recently slipping under $72,000.

Broader risk sentiment has weakened due to:

• U.S. government shutdown concerns

• President Donald Trump’s ongoing tariff and geopolitical tension

• Delays in U.S. crypto regulation

• Investors rotating into safe-haven assets like gold and silver

At the same time, mining conditions have become tougher across the industry.

Additional pressures include:

• Rising energy and operational costs

• Network hashrate dipping below 1 zetahash per second as miners shut down unprofitable rigs

• Growing discussions around long-term risks such as quantum computing threats

Together, these factors are squeezing miners’ margins worldwide — including state-backed operations like Bhutan’s.

Bigger Picture

Bhutan’s strategy highlights a new reality for sovereign crypto holders: mining alone is no longer enough to guarantee profits.

With rewards shrinking post-halving and volatility increasing, even government-backed miners may need to actively manage reserves through periodic sales.

For markets, such large-scale sovereign transfers can add short-term supply pressure — especially during already fragile sentiment.

See all our insights: Bitcoin World News