The Himalayan kingdom of Bhutan, a unique player in the sovereign Bitcoin mining space, has recently undertaken a substantial sale of its state-mined digital assets. This move, valued at over $22 million, comes amidst challenging market conditions for cryptocurrencies and increasing hurdles for mining operations globally.
Significant Bitcoin Divestment
Bhutan's state-owned enterprise, Druk Holding and Investments, executed transfers totaling approximately $22.3 million in Bitcoin. Blockchain analytics firm Arkham reported two distinct transactions: 184 BTC, worth $14 million, and an additional 100.8 BTC, valued at $8.3 million. These funds were directed to crypto market maker QCP Capital, a common practice signaling a sale as market makers facilitate asset liquidity. This divestment further reduced Bhutan's Bitcoin holdings, which have fallen from a peak of 13,295 BTC in October 2024 to approximately 5,700 BTC. Consequently, Bhutan has dropped to the seventh position among nation-states in terms of Bitcoin reserves.
Navigating Mining Headwinds and Market Downturn
Bhutan initiated its hydropower-powered Bitcoin mining operations in 2019, accumulating around $765 million in Bitcoin since then. However, the landscape for mining has become considerably more challenging, particularly after the 2024 Bitcoin halving, which nearly doubled the cost to mine one Bitcoin. As a result, Bhutan is now mining significantly less Bitcoin compared to its 2023 output of 8,200 BTC. The recent sale also coincides with a broader market downturn, seeing Bitcoin prices drop over 46% from its all-time high of $126,080 last October to less than $67,000. While the exact rationale behind this specific large-scale liquidation remains undisclosed, Arkham notes that Bhutan periodically sells Bitcoin in batches, often around $50 million, as part of its ongoing management strategy, with significant sales also occurring in mid to late September 2025. This suggests a calculated response to evolving market dynamics and mining economics rather than an isolated event.
