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Bhutan moved $22.4 million worth of bitcoin from sovereign wallets this week, including a direct transaction to institutional markets firm QCB Capital. The Himalayan nation’s cryptocurrency portfolio has fallen from a peak of $1.4 billion to about $412 million.
The outflows continue a pattern of periodic liquidations by the royal government of Bhutan, which began to mine and hold bitcoin in 2019. These latest trades highlight the questions facing sovereign cryptocurrency strategies amid ongoing market pressures.
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Bitcoin sales and recent transaction patterns
The confirmed Blockchain analytics platform Arkham bitcoin sales. Two major flows came from Druk Holding Investments (DHI), Bhutan’s sovereign investment arm. The transactions included 184.03 BTC worth $14.09 million, and 100.82 BTC worth $8.31 million five days ago. The latter went directly to the associated titles QCP Capitalan industrial institutional market company based in Singapore active in the derivatives and spot markets.
Second To analyze ArkhamBhutan typically sells Bitcoin in batches of around $50 million. Historical data shows particularly large sales between mid to late September 2025, with many offers exceeding $50 million each. Current weekly outgoing revenue of $22.4 million is lower than previous sales, indicating a more conservative liquidation or quota reduction.
The QCP Capital deal signals a strategic divestment rather than a distressed sale. Market makers like QCP allow large block trades without major market disruptions. This allows sovereigns to exit their positions with less price impact, unlike direct exchange deposits that can cause more severe reactions.
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Bitcoin mining process in Bhutan and its profitability
Bhutan’s bitcoin strategy began in 2019, with DHI launching a mining operation fueled by the country’s abundant hydroelectric resources. Arkham estimates that Bhutan has generated more than $765 million in Bitcoin profits since its foundation, while total energy costs have been around $120 million. Hydroelectric power has kept costs low compared to fossil fuel-based competitors.
The fork of Bitcoin in 2024 has radically changed the economics of mining. This event, which occurs approximately every four years, splits the block awards in half. This division doubled the cost of mining a Bitcoin, making operations less efficient. The data shows that Bhutan has extracted most of its activities before April 2024 and then drastically reduced production.
The pre-halving profit margins allowed Bhutan to raise large parties at reasonable costs. However, the decline in efficiency after half prompted the country to profit from its reserves rather than continue energy-intensive mining with lower yields. This strategic shift from accumulation to selective selling reflects a wider trend in the industry with the sector’s profitability declining.
Low portfolio and current holdings
Bhutan’s cryptocurrency portfolio has seen a significant contraction. appears Data from Arkham Intelligence DHI’s on-chain assets are currently at about $412 million, down more than 70% from a peak of $1.4 billion. The wallet consists mostly of 5,700 Bitcoin (BTC), with minor holdings in Ethereum and other tokens.
The decrease in the wallet is due to the continued sale and decrease in the price of Bitcoin. Some erosion of value came from strategic sales for profit or financial needs, but the broader market conditions during 2025 and the beginning of 2026 also contributed. The peak of Bhutan’s shares coincides with the highest prices of Bitcoin, adding to the relative decline with the price correction.
The transaction records show that the main partners of the DHI exchange are Binance – which had $261 million in value transferred, 68% of the activity – and Celsius Network, which had $118 million (31%). Smaller amounts moved through the Kraken. These interactions on exchanges, coupled with direct transactions with market makers, demonstrate a sophisticated approach to treasure management from Bhutan.
Manage an entity Druk Holding and Investments These digital assets stand alongside traditional investments as part of Bhutan’s broader diversification strategy. The integration of digital currencies into the sovereign treasury places Bhutan among a select group of countries that directly participate in digital asset markets. Whether the ongoing liquidations in Bhutan indicate a complete exit or just a portfolio rebalancing remains an open question as observers track trends in sovereign cryptocurrency adoption.
