Bhutan has sold over $110m in Bitcoin as sovereign stack drops 65%

Bhutan has sold over $110m in Bitcoin in 2026, cutting sovereign holdings by about 65% from their peak as Druk Holding shifts from mining-led accumulation to steady liquidation.

The Kingdom of Bhutan has quietly become one of the most closely watched sovereign Bitcoin sellers of 2026, with its state investment arm offloading more than $110 million worth of $BTC since the start of the year — a systematic drawdown that has cut its holdings by 65% from their peak and raised questions about the future of one of crypto’s most unlikely national success stories.

The latest and largest transaction occurred on March 17 and 18, when Druk Holding & Investments — the sovereign wealth fund that manages Bhutan’s digital asset reserves — transferred 973 $BTC worth approximately $72.3 million across multiple addresses. Among the recipients was QCP Capital, a Singapore-based institutional trading firm, indicating structured OTC selling designed to minimize market impact rather than distressed dumping onto open exchanges. A portion was also directed toward Binance hot wallets.

Bhutan’s Bitcoin journey began in 2019, when the country began quietly mining $BTC using surplus hydroelectric power from its Himalayan rivers — a near-zero marginal cost energy source that made mining highly profitable even at modest price levels. At its peak, Bhutan held approximately 13,000 $BTC, valued at over $1.4 billion — a sum representing more than 40% of the country’s entire gross domestic product at the time. Those holdings have since contracted to roughly 5,400 $BTC, worth around $374 million at current prices.

A critical detail flagged by on-chain analytics firm Arkham Intelligence adds a new dimension to the story: Bhutan has not recorded a Bitcoin inflow of over $100,000 in more than a year. This strongly suggests the country has halted or severely curtailed its mining operations, shifting from an accumulation-and-hold strategy to a pure liquidation mode. The reasons remain officially unconfirmed, but analysts have pointed to declining mining profitability following the April 2024 halving, rising operational costs, and competing demands on the country’s hydropower infrastructure.​

The selling pattern has been methodical rather than reactive. Bhutan typically transacts in $5–10 million clips, with occasional larger tranches when market conditions are favorable. The $72.3 million move this week is an outlier in size, suggesting either an acceleration of the drawdown timeline or an opportunistic decision to lock in prices near the $71,000 level before further deterioration.​

For the broader market, the sustained presence of sovereign-scale selling at these volumes is a non-trivial headwind. Unlike retail or even institutional fund selling, sovereign liquidations tend to be price-insensitive and recurring — features that can create persistent ceiling pressure on any attempted recovery. As Bitcoin navigates a fragile macro environment with fear sentiment elevated and ETF flows recently reversing, Bhutan’s quiet but relentless selling is one more structural force the bulls must absorb on the path back to new highs.