5 February, 2026: Bhutan has been selling part of its hydropower-mined Bitcoin holdings to manage market swings, offloading over $200 million in the past year while retaining about 13,119 BTC worth roughly $860 million as a long-term national asset.
High Signal Summary For A Quick Glance
- Bhutan’s sales do not signal a shift away from its long-term Bitcoin strategy.
- Core reserves appear largely intact, with sales framed as tactical management rather than capitulation.
- Highlights how sovereign actors balance crypto gains with real-world fiscal needs and national cost pressures.
- Retail traders: May see short-term BTC pressure and heightened volatility during sovereign sale windows.
- Long-term holders: Increased volatility can trigger reassessments of conviction and risk tolerance.
- Institutions: May incorporate sovereign flows into ETF allocation timing and broader risk models.
- Builders & miners: Post-halving economics, operational costs, and competitive pressure remain central regardless of sovereign activity.
Why Bhutan Is Selling Portions of Its Bitcoin Holdings
Bhutan’s recent Bitcoin transfers are linked to profit-taking during price highs, using BTC mined with surplus hydropower since 2019. The funds were directed toward national needs like public sector pay hikes and projects such as the Gelephu Mindfulness City, allowing the country to raise capital without tapping its fiat reserves.
This isn’t new. Bhutan has sold small portions of its Bitcoin holdings in past cycles as part of a long-term strategy, which previously caused brief market jitters but no lasting impact. Bitcoin prices stabilized as investors noted Bhutan kept most of its reserves, with analysts viewing the sales as smart financial management rather than distress selling.
Key milestones in Bhutan’s evolving state-backed Bitcoin strategy
Early crypto warning issued
Bhutan’s Royal Monetary Authority releases its first public caution against cryptocurrency use, citing financial, legal, and regulatory risks.
Mining regulatory sandbox launched
The RMA introduces a Regulatory Sandbox Framework to safely test crypto mining and blockchain-related initiatives.
State-backed Bitcoin mining begins
Bhutan initiates Bitcoin mining via Druk Holding & Investments, using surplus hydropower while BTC trades near $5,000.
Mining infrastructure expands
Bhutan imports large-scale ASIC hardware and establishes its largest mining facility in Thimphu to scale operations.
Bitdeer partnership announced
DHI partners with Bitdeer to launch a $500M green crypto fund focused on renewable-powered Bitcoin mining.
Mining capacity scale-up begins
Bhutan and Bitdeer begin expanding mining capacity toward 600MW by 2025, including construction of a sixth mining facility.
National Bitcoin holdings revealed
Arkham Intelligence discloses Bhutan holds 13,011 BTC (≈$780M), largely accumulated through state mining since 2019.
Strategic Bitcoin sales executed
Bhutan sells over $100M in BTC, including 367 BTC via Binance, to fund national development initiatives.
Reserve movements spark speculation
The government transfers 184 BTC to a new address, fueling speculation around OTC sales for infrastructure funding.
Crypto-powered tourism launches
Bhutan launches the world’s first national crypto-enabled tourism payment system in partnership with Binance Pay.
Peak BTC transfers during market highs
As Bitcoin hits record prices, Bhutan moves over 1,300 BTC to exchanges and new wallets, likely for liquidation.
BTC pledged for Mindfulness City
Bhutan commits up to 10,000 BTC (≈$1B) to finance the Gelephu Mindfulness City mega-development project.
Ongoing BTC monetization continues
The government transfers BTC to QCP Capital and executes a ~$22.4M sale, continuing a structured asset monetization strategy.
What Readers Should Watch Next
- Bhutan’s Future Sales: Track on-chain transfers from known DHI wallets for additional BTC liquidations, especially during market highs or post-halving cost pressures.
- BTC Price Fluctuations: Monitor Bitcoin’s value around $70k levels, as sovereign sales could contribute to short-term dips or signal broader adoption trends.
- Regulatory Updates: Watch for changes in Bhutan’s crypto policies or international scrutiny on hydropower mining, potentially affecting sovereign holdings globally.
- Other Nations’ Moves: Observe if countries like El Salvador or UAE follow suit with BTC sales or mining expansions, influencing the narrative of state-backed crypto.
