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04/12/2026

Bhutan Dumps 70% of Its Bitcoin in 18 Months, May Have Shut Down Mining Operations

The Himalayan kingdom has reduced its reserves from 13,000 BTC to 3,954 BTC since October 2024, with $215.7 million moved out this year alone.

Bhutan Dumps 70% of Its Bitcoin in 18 Months, May Have Shut Down Mining Operations

In a move that has rattled the global crypto community, Bhutan is quietly dismantling one of the most unique Bitcoin experiments ever conducted by any government. The tiny Himalayan kingdom has sold off roughly 70% of its Bitcoin holdings over the past 18 months, marking the end of a pioneering hydropower-driven Bitcoin mining model.

Bhutan's Bitcoin Exit

According to data from Arkham Intelligence, the Royal Government of Bhutan transferred approximately 319.7 BTC worth $22.68 million to two separate addresses last Thursday. Roughly 250 BTC was sent to a wallet previously used to route funds for sales through Galaxy Digital and OKX, while the remaining 69.7 BTC was moved to a new, unidentified address.

This is only the latest transaction in a long string of ongoing sell-offs. From a peak of around 13,000 BTC in October 2024, Bhutan now holds just 3,954 BTC valued at approximately $280.6 million — a 70% decline over 18 months.

A Breakthrough Hydropower Mining Model

Bhutan was once a living proof-of-concept for sovereign-level Bitcoin mining. The small, landlocked nation had every structural advantage: cheap renewable energy from hydropower, no legacy financial infrastructure to protect, and a sovereign wealth fund willing to experiment — Druk Holding and Investments.

Bhutan's hydropower-backed Bitcoin mining operation was once regarded as the ideal model for state-level Bitcoin accumulation. The country leveraged abundant energy from its rivers to run mining farms, creating a new revenue stream and diversifying its foreign reserves.

Signs That Mining Has Stopped

Notably, Bhutan's Bitcoin mining operations may have halted or slowed dramatically. Arkham data shows the last inbound Bitcoin transaction to Bhutan's wallets worth more than $100,000 was recorded over a year ago. This suggests a government that once self-mined Bitcoin from its own hydropower may now simply be drawing down accumulated reserves, with no new supply to replace what it sells.

Market Context and Economic Pressure

Bhutan's sell-off comes at a time when most major institutions are actively accumulating more crypto. MicroStrategy just purchased an additional 4,871 BTC for $330 million last weekend, bringing its total holdings to 766,970 BTC. US Bitcoin ETFs absorbed roughly 50,000 BTC in March alone. Even the Ethereum Foundation staked $93 million in ETH in a single day rather than selling.

Even gold-backed sovereign funds are building positions amid the Iran conflict. Bhutan stands as the only sovereign-level holder clearly in liquidation mode.

The Economic Factors Behind the Decision

This shift can likely be explained by fundamental economics. Bhutan's Bitcoin mining may have been viable when difficulty was lower and BTC was trading above $90,000. At today's price of around $71,000, with network difficulty at all-time highs and block rewards halved to 3.125 BTC, profit margins for small-scale sovereign mining have been squeezed significantly.

Data shows $215.7 million worth of Bitcoin has been moved out of Bhutan's holding addresses this year alone, with $162.6 million of that going to unlabeled wallets.

Impact on the Global Crypto Community

Bhutan's retreat from the Bitcoin market is not just an isolated event — it reflects the real challenges small nations face when entering the crypto space. It raises questions about the long-term viability of sovereign Bitcoin mining, especially as markets grow more competitive and operating costs rise.

  • Halving pressure: The reduction of block rewards to 3.125 BTC has significantly cut mining profitability
  • Rising difficulty: Network difficulty has hit all-time highs, demanding more energy and higher operating costs
  • Price volatility: Bitcoin's drop from $90,000+ to around $71,000 has directly impacted revenue

Silence From the Government

Druk Holdings has not responded to multiple emails and calls from reporters over the past week, and no public statement has been made regarding the transfers or the status of its mining operations. The silence has only fueled speculation about whether Bhutan has exited the Bitcoin space entirely.

Bhutan's decision to sell off 70% of its Bitcoin reserves over 18 months marks the end of one of the boldest experiments in crypto history. While it may be the financially prudent move given the economic headwinds, it also underscores the very real obstacles small nations face when trying to compete in the digital asset market. Whether this is a warning signal for the sovereign mining model or simply an outlier case, only time will tell.