Bhutan’s foray into cryptocurrency has proven financially lucrative. Initially mining Bitcoin using its abundant hydropower resources, the country now has a portfolio allowing a potential profit of approximately $767 million if it decides to liquidate its remaining holdings at current market rates. This figure is notable considering Bhutan’s modest population of around 750,000.

The Mechanics of Bitcoin Mining

In 2019, Bhutan began its journey into Bitcoin mining, leveraging the surplus energy generated from its glacier-fed rivers. The operation was conducted by Druk Holding and Investments, a state-owned entity. By late 2024, Bhutan amassed nearly 13,000 BTC in its reserves.

The situation changed significantly following the April 2024 Bitcoin halving, which reduced mining rewards. The last notable deposit into wallets associated with Bhutan occurred more than a year ago, raising speculation about the country’s ongoing mining activities.

Recently, Bhutan transferred 100 BTC, approximately valued at $8.1 million, from its holdings as reported by Arkham Intelligence, a blockchain analytics firm. Since the beginning of 2025, it has liquidated around $230 million worth of Bitcoin, at an average selling rate of about $50 million per month.

Bhutan is selling Bitcoin.

Bhutan just moved 100 BTC ($8.1M) out of its holding wallets.

At their current rate of selling, they will run out of BTC before the end of September. pic.twitter.com/z8P7yf0kzS

— Arkham (@arkham) May 12, 2026

Understanding the Sell-Off Strategy

Analysts at Arkham predict that Bhutan could deplete its remaining Bitcoin reserves before the end of September if it maintains its current selling trajectory. However, some experts, like Markus Levin, co-founder of XYO, note that these forecasts are based on consistent selling rates that may not accurately reflect Bhutan’s historical approach.

Bhutan’s previous sale included 2,077 BTC valued at $163 million in late 2024, followed by a further $100 million tranche the following September. The selling pattern has oscillated, featuring periods of significant activity intermixed with quieter times.

In March of this year, Bhutan sold over $120 million worth of Bitcoin, highlighted by a notable transfer of 519.7 BTC valued at about $36.75 million. There are indications that transactions are often funneled through QCP Capital, a trading firm based in Singapore.

This fluctuating approach illustrates a strategic financial management style. Lacie Zhang, a research analyst at Bitget Wallet, emphasized that Bhutan seems to be operating an intelligent asset management strategy aimed at optimizing profits while retaining some exposure to Bitcoin.

Given that the Bitcoin was mined at nearly zero operational costs, every sale provides profit, making Bhutan’s strategy particularly effective.

Future Prospects in Digital Assets

Despite the ongoing sales, Bhutan remains committed to expanding its footprint in the digital asset space. The government has designated Gelephu Mindfulness City in southern Bhutan as a hub for holding cryptocurrencies such as Bitcoin, Ethereum, and BNB as part of its strategic reserves.

In December 2025, King Jigme Khesar Namgyel Wangchuck committed to allocating up to 10,000 BTC, estimated to be around $1 billion at the time, to support the city’s development.

Featured image from Pexels, chart from TradingView