In 2026, Bhutan has divested over $110 million in Bitcoin, reducing its sovereign holdings by approximately 65% from their highest point as Druk Holding transitions from a mining-focused strategy to a more consistent liquidation approach.
Druk Holding & Investments has sold off more than $110 million worth of $BTC this year. This includes a significant transfer of 973 $BTC, valued at around $72.3 million, which took place on March 17-18 and was partially routed through QCP Capital and Binance. The nation’s Bitcoin reserves have decreased from about 13,000 $BTC (worth over $1.4 billion and constituting nearly 40% of its GDP at the peak) to roughly 5,400 $BTC, now valued at approximately $374 million. Notably, there have been no inflows exceeding $100k for over a year, indicating that mining activities have largely ceased.
The Kingdom of Bhutan has emerged as one of the most scrutinized sovereign sellers of Bitcoin in 2026. Its state investment entity has systematically liquidated more than $110 million worth of $BTC since the beginning of the year — an action that has reduced its holdings by two-thirds from their peak levels and raised concerns regarding the sustainability of what was once considered an unlikely national success story in cryptocurrency.
The most recent major transaction occurred on March 17-18 when Druk Holding & Investments — responsible for managing Bhutan’s digital asset reserves — transferred out about 973 $BTC, equating to roughly $72.3 million across various addresses. Among those receiving funds was QCP Capital, an institutional trading firm based in Singapore; this suggests that these transactions were structured OTC sales aimed at minimizing market disruption rather than distressed sales on public exchanges. A portion also went into Binance hot wallets.
The journey into Bitcoin began for Bhutan back in 2019 when it started discreetly mining using surplus hydroelectric power generated by its Himalayan rivers—a virtually cost-free energy source that made mining highly lucrative even with modest price fluctuations. At its zenith, Bhutan possessed around 13,000 $BTC, valued above $1.4 billion—an amount representing over one-third (40%) of the country’s total GDP during that period; however, these holdings have since dwindled to approximately only about half—5,400 $ BTC —currently estimated at around$374million basedon today’s prices .
An important insight provided by Arkham Intelligence reveals another layer to this narrative: Bhutan hasn’t recorded any inflow exceeding$100kforoverayear . This strongly indicates either a complete halt or significant reductioninminingoperations , transitioningfromanaccumulationstrategytoapureliquidationmode . Whileofficialreasonsremainunclear , analysts speculate declining profitability post-April2024halving , increasing operational costs ,andcompetingdemandsonthecountry’shydropowerinfrastructureaspossiblefactors contributingtothis shift .
This selling pattern appears deliberate rather than reactive; typically transacting between$5–10million per sale with occasional larger amounts when conditions are favorable—the recent$72 .3milliontransactionstandsoutinsize suggestingitcouldeitherindicateaccelerateddrawdownorthedecisionto capitalizeonpricesnearthe$71Kmarkbeforeanypotentialdecline occurs again .
The ongoing presenceofsovereign-scale sellingatthesevolumes presents non-negligible challengesfor themarket overall.Unlike retailor even institutional fund sell-offs,sellingbysovereigns tendsnotto be sensitive top rice changesand tends toward recurrence—which can exert persistent pressure against any recovery attempts.AsBitcoin navigatesfragile macroeconomicconditionswithheightenedfear sentimentandrecentETFflows reversing,Bhutan’sconsistent yet quiet liquidation represents yet another structural challengethatbulls must contendwithontheirjourneybacktonewhighs.