Bhutan Sells Off 71% of Its Sovereign Bitcoin Reserve in 18 Months

Bhutan Continues Steady Liquidation of BTC Holdings

On April 10, 2026, the Bhutanese government sold 250 BTC worth $18 million. According to blockchain analytics firm Arkham Intelligence, the Himalayan kingdom has offloaded approximately $180 million in Bitcoin since the beginning of 2026.

"THE DRAGON KING IS SELLING BITCOIN. The Fifth Dragon King of Bhutan, Druk Gyalpo Jigme Khesar Namgyel Wangchuck, just sold $18M of BTC. Bhutan has sold approximately $180M Bitcoin since the start of the year." — Arkham (@arkham), original post

Arkham Intelligence data shows that at its peak in October 2024, the kingdom held roughly 13,000 BTC. Over the subsequent 18 months, Bhutan's sovereign wealth fund Druk Holding and Investments systematically liquidated approximately 71% of its position. The government-controlled wallet currently holds around 3,774 BTC valued at $274.8 million.

Why This Matters

Bhutan stands as one of the few nations to have built a sovereign Bitcoin reserve. The country accumulated its holdings through state-backed mining operations powered by surplus hydroelectric energy — a model widely regarded as a benchmark for sustainable crypto mining. The ongoing sell-off raises critical questions about the viability of state-run mining programs, especially for smaller operators facing increasingly challenging market conditions.

Has Bhutan Stopped Mining?

The last recorded deposit into the national crypto fund from mining pool operator Foundry USA occurred on November 13, 2024. That transfer amounted to approximately 0.9 BTC, worth roughly $75,730 at the time of the transaction. No further mining-related inflows have been detected since.

Journalist Colin Wu has suggested, based on this extended gap in deposits, that Bhutan may have entirely ceased its cryptocurrency mining operations.

Mining Economics Under Severe Pressure

Bitcoin mining economics deteriorated sharply throughout 2025. Rising network difficulty, mounting debt burdens, and stagnant cryptocurrency prices forced approximately 20% of miners to capitulate, according to estimates from CoinShares.

CoinDesk noted that the profitability of Bhutan's relatively small-scale mining farm likely suffered significantly under these conditions. Selling electricity directly to neighboring India may have become considerably more profitable than using it for Bitcoin mining.

Supporting the broader trend, Bitcoin's network hashrate declined by roughly 6% during the first quarter of 2026, reflecting reduced mining activity globally.

What Remains of Bhutan's Crypto Strategy

Despite the significant drawdown, Bhutan retains a meaningful sovereign Bitcoin position. The remaining ~3,774 BTC, valued at $274.8 million, still represents a substantial asset for the small kingdom's economy. However, the combination of zero new mining inflows and persistent selling points to a fundamental shift in the country's cryptocurrency strategy — potentially marking the end of one of the most distinctive state-level Bitcoin experiments in the world.