Bhutan has somehow become one of the most closely watched government bitcoin holders in the world. Now, the Himalayan kingdom is drawing attention again after moving another large batch of coins to external addresses. 

On-chain data shows that the Royal Government of Bhutan recently transferred about 519 bitcoin, worth roughly $36 million at recent prices, to an exchange-linked address. The move adds to a string of transactions this year that have taken its 2026 total outflows past $150 million. For a country that once built one of the largest state-owned bitcoin reserves, the pace of these transfers is hard to ignore. 

Blockchain analytics firm Arkham Intelligence flagged the latest transaction, continuing a pattern that has grown more intense in recent weeks. What started earlier this year as smaller sales in the $5 million to $15 million range has shifted into much larger transfers, some exceeding $40 million in a single move. 

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Bhutan is Moving From Bitcoin Mining Giant to Active Seller 

Bhutan’s bitcoin story did not begin with trading desks or crypto exchanges. It began with hydropower. Through its commercial arm, Druk Holding and Investments, the government invested in large-scale bitcoin mining powered by the country’s abundant hydroelectric resources. Because that energy is state-controlled and relatively affordable, the cost of mining has been significantly lower than in many other parts of the world. 

By late 2024, Bhutan’s holdings were estimated at around 13,000 bitcoins, placing it among the top government holders globally. At the time, the value of those coins approached nearly $2 billion when prices were near their highs. Today, that number has dropped sharply. Current on-chain estimates suggest holdings have fallen to around 4,400 bitcoins, a decline of roughly two-thirds from the peak. 

The change isn’t just about market prices. It reflects active selling. Transfers to Singapore-based trading firm QCP Capital have appeared repeatedly this year, suggesting a structured over-the-counter (OTC) arrangement rather than random liquidations. This kind of setup typically allows large holders to sell without causing sharp price swings on public exchanges. 

Prime Minister Tshering Tobgay has previously defended the country’s decision to mine bitcoin as a long-term strategy. “It’s a simple strategic choice that many people have made and earned billions of dollars, and I think governments should do it,” he said, framing the move as a calculated economic decision rather than a speculative gamble. That earlier confidence makes the recent drawdown even more closely watched. 

Why Bhutan May Be Cashing Out 

For Bhutan, every coin sold is a profit in accounting terms. The country’s mining operations were largely powered by domestic hydropower. Selling into global markets can provide foreign currency that supports the national budget, infrastructure projects, and economic diversification efforts. 

Bhutan’s economy relies heavily on hydropower exports to India and tourism. Both sectors can face pressure from regional shifts and global slowdowns. In that context, bitcoin reserves offer flexibility. When prices are strong or when cash is needed, the government can tap into its digital holdings. 

Still, the scale of recent outflows has raised questions. In December 2024, Bhutan announced a Bitcoin Development Pledge that aimed to commit up to 10,000 bitcoin toward the ambitious Gelephu Mindfulness City project, a planned economic and spiritual hub designed to attract global investment. At the time, that pledge was valued at hundreds of millions of dollars. With current holdings below 5,000 coins, meeting that earlier commitment now requires a major shift in strategy. 

Bhutan’s moves also come at a time when government bitcoin strategies are under fresh scrutiny. Countries like El Salvador have made headlines for steadily accumulating bitcoin as part of a long-term national plan, while others have treated it as a strategic reserve that can be trimmed when needed. Bhutan seems to be taking the practical route. It mined aggressively when conditions were favorable, and now it is converting part of those holdings into liquidity as its priorities evolve. 

As markets shift and national projects move forward, Bhutan’s strategy shows that for governments, bitcoin is no longer just a bold experiment. It is an asset that can be held, spent, or rebalanced like any other part of a modern treasury. 

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