Sell Bitcoin: Why Bhutan is Liquidating its BTC Holdings
Bhutan is making headlines as it quietly unwinds a pioneering Bitcoin experiment. The Royal Government of Bhutan recently transferred approximately 319.7 BTC, valued at $22.68 million, to two separate addresses, according to data from Arkham Intelligence. Roughly 250 BTC was directed to a wallet previously used for sales through Galaxy Digital and OKX, while another 69.7 BTC went to a new, unidentified address. This is part of an ongoing series of sales that have been occurring for some time.
From Mining Pioneer to Seller
In October 2024, Bhutan held around 13,000 BTC, accumulated through a unique hydropower-backed mining operation managed by Druk Holding and Investments (DHI), the kingdom’s sovereign wealth fund. This initiative was a proof-of-concept for sovereign Bitcoin mining – a small, landlocked nation with access to cheap renewable energy, lacking a traditional financial infrastructure, and possessing a sovereign wealth fund willing to innovate. However, Bhutan has been steadily selling off its holdings.
Currently, Bhutan’s Bitcoin reserves stand at 3,954 BTC, worth roughly $280.6 million – a 70% reduction in just 18 months. Arkham data reveals that $215.7 million in Bitcoin has been moved out of Bhutan’s holding addresses this year alone, with $162.6 million going to unlabeled wallets. This selling pressure is particularly notable as most major Bitcoin holders are currently accumulating, not liquidating.
Contrasting Trends in the Bitcoin Market
The trend contrasts sharply with other significant players in the crypto space. For example, Strategy bought 4,871 BTC for $330 million last weekend, bringing its total holdings to 766,970 BTC. U.S. spot Bitcoin ETFs absorbed approximately 50,000 BTC in March, and the Ethereum Foundation staked $93 million of ether instead of selling. Even sovereign wealth funds backed by gold have been increasing their positions amidst geopolitical tensions.
Bhutan appears to be the only sovereign-level entity visibly liquidating its Bitcoin holdings. Furthermore, questions are arising about the continued operation of the mining facility itself. Arkham data indicates that Bhutan’s last significant Bitcoin inflow (exceeding $100,000) was recorded over a year ago. This suggests the government may now be simply spending down its accumulated Bitcoin, without any new supply being generated to replenish it.
Economic Factors Driving the Shift
DHI has not responded to repeated inquiries from CoinDesk regarding these transactions or the status of the mining operation. However, economic factors likely play a significant role. The mining operation was viable when Bitcoin difficulty was lower and the price traded above $90,000. At current levels near $71,000, with network difficulty at all-time highs and the post-halving block reward reduced to 3.125 BTC, the margins on small-scale sovereign mining have significantly compressed.
The same hydropower that initially made Bhutan’s operation unique may now generate more revenue when sold to neighboring India than through Bitcoin mining, especially considering the depreciation of mining hardware with each difficulty adjustment. This decision to sell, rather than hold or mine, highlights the gap between Bitcoin’s narrative appeal to nation-states and the practical realities of maintaining a position during a prolonged market downturn.
Bhutan’s remaining 3,954 BTC is now smaller than Strategy’s typical weekly purchases. The kingdom that once held 13,000 Bitcoin mined from its own mountains is now witnessing a single company in Virginia accumulate more in five days than Bhutan currently possesses.
Read more: Bhutan moves another 500 bitcoin to exchanges as 2026 outflows top $150 million
Source: CoinDesk
