Bhutan sells Bitcoin reserves amid falling prices, rising mining costs, and strategic shifts toward infrastructure, diversification, and digital asset initiatives.
Bhutan has reduced its Bitcoin reserves after transferring over $22 million worth of BTC. Sales are coming in as prices soften and the profitability of mining declines. Therefore, the kingdom is recalibrating its strategy for its digital assets amid challenging market conditions.
Bhutan Moves Bitcoin Holdings Amid Market Pressure
According to Arkham data, Bhutan sent 184 BTC worth $14 million on Wednesday. Some time earlier, 100.8 BTC currency, valued at $8.3 million, was transferred last Friday. As a result, total transfers amounted to almost $22.3 million during one week.
The Bitcoin that was transferred went to crypto market-maker QCP Capital, Arkham reported. Normally, such transfers are indicative of selling intentions. Therefore, analysts consider the movements as strategic liquidations not as internal reshuffling.
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Bhutan has had a slow pattern of selling since late 2025. This approach is indicative of softer mining economics following a Bitcoin halving in 2024. As a consequence, costs for state-supported mining operations, effectively doubled in production costs.
Bitcoin prices have also fallen sharply over the period. Currently, BTC is trading close to $72,000, which is almost 40% down from October highs. Consequently, lower prices place even more pressure on mining profitability and the valuation of reserves.
Arkham said that Bhutan’s recent transfers must have been for exchange deposits or OTC sales. Such methods help to limit the impact on the market. Therefore, the kingdom seems bent on orderly liquidation, not aggressive selling.
Heavy selling in 2025 and the first half of 2026 resulted in a shift in the world ranking for Bhutan. Previously the fourth largest nation-state holder, it is now in seventh. This shift puts in perspective the magnitude of recent reserves cuts.
Even with sales, Bhutan has notable reserves of Bitcoin. Estimates vary from 5,700 BTC to more than 11,000 BTC. At current prices, the holdings are worth from $1.1 billion to $1.3 billion.
Mining Economics Drive Strategic Shift in Bhutan
The turn from accumulation to selling is due to increasing costs of production. Bhutan’s 2023 was its busiest mining year, with the production of around 8,200 BTC. However, the 2024 halving shocked profitability margins down.
While Bhutan is using the excess hydroelectric power, trade-offs are growing. Mining expansion plans target 600MW capacity by 2026. Meanwhile, energy exports to India achieve stable national revenues.
As mining becomes more widespread, the electricity competition becomes fiercer. Therefore, policymakers need to balance between digital asset mining and conventional energy exports. This tension affects Bhutan’s recent liquidation strategy.
Economic diversification also has a role to play in reserve management. Rather than sitting on Bitcoin passively, Bhutan is using profits for infrastructure development. This shift is consistent with national-level planning objectives pursued on a broader scale.
In December 2025, the King announced a pledge of up to 10,000 BTC reserve. The funds are targeted to the development of the Gelephu Mindfulness City project. At the announcement, the pledge was worth about $1 billion.
Bhutan has also made progress in some digital initiatives since 2025. In October 2025, it released a blockchain-based national digital identity system. This was the deeper integration of blockchain into public infrastructure.
Later, in December 2025, Bhutan announced the gold-backed digital token. The asset bridges the national reserves with blockchain technology. Therefore, it is pro-diversification and not limited to pure cryptocurrency exposure.
In January 2026, Bhutan expanded the use of crypto payment throughout tourism. Binance Pay helped make transactions across different countries easier for visitors. Consequently, adoption grew in the national service economy.
Source: https://www.livebitcoinnews.com/bhutan-trims-bitcoin-reserves-as-mining-conditions-worsen/
