Bhutan Trims Bitcoin Reserves With $22.4M Sale as Sovereign Crypto Strategy Evolves

Bhutan has reduced its Bitcoin exposure again, moving roughly $22.4 million worth of $BTC from sovereign-linked wallets this week, including a direct transfer to institutional market maker QCP Capital. The transactions come as the Himalayan kingdom’s crypto portfolio has shrunk sharply from a peak valuation of $1.4 billion to about $412 million.

Blockchain data confirms the sales were executed by Druk Holding Investments (DHI), Bhutan’s sovereign investment arm. The latest activity included two notable transfers: 184.03 $BTC valued at approximately $14.1 million, and an earlier movement of 100.82 $BTC worth around $8.3 million. The latter was sent directly to addresses associated with QCP Capital, a Singapore-based firm known for facilitating large block trades in spot and derivatives markets.

Bhutan’s Bitcoin outflows fit a familiar pattern. Since beginning to mine and hold $BTC in 2019, the government has periodically liquidated portions of its holdings, often in tranches close to $50 million. Compared with the heavier sell-offs seen between mid and late September 2025, this week’s activity appears relatively modest, suggesting a more calibrated approach or simply a smaller reserve base.

The use of a market maker rather than public exchange deposits points to deliberate execution rather than distress selling. By routing trades through firms like QCP Capital, large holders can reduce slippage and avoid sudden shocks to the open market—an increasingly common tactic among institutional and sovereign participants.

Bhutan’s Bitcoin strategy was built on its access to low-cost hydroelectric power, which enabled DHI to operate mining facilities at a fraction of the energy cost faced by fossil-fuel-dependent peers. Estimates suggest the country generated more than $765 million in Bitcoin revenue against roughly $120 million in energy expenses, largely before the April 2024 halving reshaped mining economics.

That halving cut block rewards in half, effectively doubling the cost of producing one Bitcoin. Data indicates Bhutan mined the majority of its $BTC before this event and significantly reduced output afterward. As mining margins tightened, the focus appears to have shifted from accumulation to monetization of existing reserves.

Today, Bhutan’s on-chain portfolio is dominated by roughly 5,700 $BTC, with minimal exposure to Ethereum and other digital assets. The steep decline in portfolio value reflects both continued sales and the broader downturn in Bitcoin prices through 2025 and early 2026, following earlier cycle highs.

Transaction records show Binance as DHI’s primary exchange counterparty, accounting for the majority of historical transfer value, followed by Celsius Network and smaller flows through Kraken. Combined with direct market-maker trades, this activity highlights a sophisticated treasury operation rather than ad hoc selling.

As one of the few nations actively participating in crypto markets through mining and trading, Bhutan remains a closely watched case study. Whether the recent sales mark a gradual wind-down or a routine rebalancing of sovereign assets remains unclear, but they underscore how even state-level Bitcoin strategies are adapting to tighter margins and shifting market conditions.