Bhutan sells $22.4M in Bitcoin amid portfolio decline of over 70%
Bhutan released $22.4 million in Bitcoin from sovereign wallets this week, including a direct transaction for institutional market maker QCP Capital. The Himalayan nation's crypto portfolio has dropped to $412 million from a peak of $1.4 billion.
The Flow The Royal Government of Bhutan, which began issuing bitcoins in 2019, has continued its regular flow. These recent transactions highlight the questions facing sovereign crypto strategies amid ongoing market pressure.
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Latest Bitcoin sales and trading patterns
Blockchain analytics platform Arkham confirmed Bitcoin sales. Two major inflows have come from Bhutan's sovereign investment arm, Druk Holdings Investments (DHI). The transactions included 184.03 BTC, $14.09 million and 100.82 BTC worth $8.31 million five days ago. The latter went directly to accounts linked to QCP Capital, a Singapore-based institutional market maker.
According to Arkham Analytics, Bhutan often sells Bitcoin for around $50 million. Historical data shows particularly high sales between mid- to late September 2025, with many transactions exceeding $50 million each. Current weekly outflows of $22.4 million are lower than previous sales, indicating more measured liquidity or reduced holdings.
QCP Capital's transaction reflects a strategic liquidation rather than a distressed sale. Market makers like QCP enable large trades without major market disruptions. This allows sovereigns to exit positions while reducing price impact, potentially generating higher returns than direct exchange deposits.
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Bhutan Bitcoin mining operation and profitability
Bhutan Bitcoin Strategy Launched in 2019, DHI began mining operations powered by the country's abundant hydroelectric resources. Arkham estimates that Bhutan has made more than $765 million in Bitcoin profits since its inception, with total energy costs of $120 million. Hydropower has maintained lower costs compared to competitors that rely on fossil fuels.
The 2024 Bitcoin halving has fundamentally changed the economics of mining. This event, which occurs every four years, cuts the prizes in half. Halving doubles the cost of mining a single bitcoin, making operations more efficient. Data suggests that Bhutan will have divested most of its holdings before April 2024 and reduced production significantly.
Profit margins from the first half have allowed Bhutan to accumulate valuable holdings at reasonable costs. However, declining efficiency after the halving has pushed the country to monetize the savings rather than continuing to pursue low-income energy-intensive mining. This strategic shift from warehousing to selective selling reflects a broader industry trend as the sector's profitability shrinks.
Portfolio decline and current holdings
Bhutan's cryptocurrency portfolio has experienced a dramatic decline. According to Arkham Intelligence data, DHI's assets on the chain currently total about $412 million, down more than 70% from its peak of $1.4 billion. The portfolio mostly consists of 5,700 BTC, with negligible holdings in Ethereum and other tokens.
The decline in the portfolio was caused by the ongoing sell-off and the decline in the value of Bitcoin. Some value erosion came from strategic liquidations for profit or fiscal needs, but broader market conditions contributed in 2025 and early 2026. Bhutan's top holdings are adjusted to Bitcoin price caps, which include a percentage cut when the price is adjusted.
Trading history shows that the main exchange partners of DII are Binance—the value transferred is 261 million dollars or 68% of activity and the Celsius network with 118 million (31%). Smaller sizes were moved by the Kraken. These exchange interactions combined with direct transactions with market makers demonstrate a sophisticated approach to treasury management in Bhutan.
The Druk Holdings and Investments entity manages these digital assets alongside traditional investments as part of Bhutan's broader diversification strategy. The integration of cryptocurrency into sovereign treasury positions makes Bhutan among the select few nations directly involved in digital asset markets. Whether Bhutan's continued liquidations suggest a complete exit or just portfolio rebalancing remains an open question.
