Bhutan Sells 70% of Its Bitcoin Holdings as State Mining Activity Appears to Slow

Bhutan has quietly reduced its Bitcoin reserves by nearly 70% over the past 18 months, raising fresh questions about the future of one of the world’s most closely watched sovereign crypto experiments.

According to recent on-chain data, the Himalayan kingdom’s Bitcoin holdings have fallen from approximately 13,000 BTC in October 2024 to 3,954 BTC, leaving the country with an estimated $280.6 million worth of Bitcoin at current market prices.

The latest transfer involved roughly 319.7 BTC valued at $22.68 million, moved to two separate wallet addresses. Blockchain intelligence data indicates that around 250 BTC was routed to a wallet previously linked to sales through Galaxy Digital and OKX, while the remaining amount was sent to a newly created address.

This latest transaction forms part of a broader and sustained pattern of sales that has continued throughout 2026. Available data suggests that more than $215 million in Bitcoin has been moved out of Bhutan-linked wallets this year alone, signaling what appears to be an ongoing liquidation strategy by the country’s sovereign investment arm, Druk Holding & Investments (DHI).

Bhutan’s Bitcoin holdings were originally built through a hydropower-backed mining operation, widely regarded as one of the first sovereign-level Bitcoin mining initiatives in the world. By using electricity generated from its rivers, the kingdom positioned itself as a unique example of state-backed crypto production powered by renewable energy.

However, recent blockchain activity suggests that the mining operation may have slowed significantly or even come to a halt. No major mining inflows exceeding $100,000 have been recorded for more than a year, fueling speculation that Bhutan may no longer be actively producing new Bitcoin and is instead drawing down its existing reserves.

Several economic factors may explain this strategic shift. The post-halving environment has reduced Bitcoin mining rewards, while network difficulty continues to remain near record highs. These conditions have significantly tightened margins, especially for smaller sovereign mining operations.

Analysts also point out that Bhutan’s abundant hydropower resources may currently generate stronger returns through electricity exports to neighboring India than through continued Bitcoin mining. In this context, selling part of its holdings while redirecting energy resources may represent a financially prudent decision.

Bhutan’s move stands in sharp contrast to the broader trend across global markets, where major institutions and sovereign entities continue to increase their exposure to digital assets and gold. While large corporate players and investment funds are accumulating Bitcoin, Bhutan remains one of the few sovereign-level holders visibly reducing its position.

Despite the sharp reduction, the kingdom still retains 3,954 BTC, a reserve that remains significant by sovereign standards. The key question now is whether Bhutan is merely rebalancing its treasury strategy or gradually moving away from its pioneering state-backed Bitcoin mining model altogether.

For the wider crypto market, Bhutan’s actions are being closely monitored as an important case study in how nation-states respond to the economic realities of post-halving mining, elevated network difficulty, and prolonged market volatility.