Bhutan – Are Bitcoin Sales Continuing?

The Kingdom of Bhutan has once again drawn the attention of the cryptocurrency community after the analytics platform Arkham Intelligence recorded the movement of a significant amount of bitcoin from a government wallet. According to analysts, on March 9 the country’s government transferred 175 BTC – approximately $11.85 million – to a new cryptocurrency address created just a month earlier.

This address had already appeared in previous government transactions. Earlier, 184 BTC had been sent to it from a government wallet. Thus, the new address effectively became an intermediate point in the chain of fund movements. As of March 10, all 175 BTC were still located at this address and had not been moved further, suggesting that the operation may be preparatory in nature.

At the same time, the previous batch of 184 BTC did not remain on that wallet for long. The funds were later sent to a third address that has been active since 2024. According to Arkham, this address has already been used in numerous operations: around 1,910 BTC have passed through it during its existence. However, at the time of the latest analysis only 126 BTC remained there. This transaction pattern indicates that the wallet may function as an operational or distribution address for subsequent transfers – for example to exchanges or counterparties.

Sales as Part of a Strategy

Arkham analysts note that such transactions are not new for Bhutan. In February 2026 they recorded a similar movement of cryptocurrency that later led to the sale of bitcoin worth about $7 million through the Singapore trading firm QCP Capital.

Based on blockchain data analysis, experts concluded that Bhutan follows a fairly consistent strategy. The country regularly sells small batches of bitcoin, usually in the range of $5 million to $10 million per transaction. This approach allows it to avoid significant pressure on the market and gradually convert cryptocurrency assets into traditional financial resources.

The most noticeable activity by the Bhutanese government in the crypto market occurred in mid and late September 2025. During that period analysts observed a series of operations indicating systematic sales of digital assets. At that time the market was at relatively high levels, allowing the country to generate profits from its accumulated reserves.

Bhutan’s Bitcoin Reserves

Despite periodic sales, Bhutan remains one of the largest state holders of bitcoin. According to Arkham’s current estimates, the country controls about 5,400 BTC. This volume places Bhutan seventh among governments in terms of bitcoin reserves. The United States remains the leader, holding 328,372 BTC worth nearly $22 billion.

Bhutan’s cryptocurrency portfolio is not limited to bitcoin alone. Government structures also hold other digital assets, including Ethereum and even experimental tokens such as KiboShib – a memecoin created using artificial intelligence technologies.

Management of cryptocurrency assets is carried out by the state investment holding Druk Holding and Investments. This sovereign fund is responsible for strategic management of national investments and plays a key role in the development of the kingdom’s digital economy.

How Bhutan Accumulated Its Bitcoins

Most of the country’s cryptocurrency reserves were obtained not through market purchases but through its own mining operations. Bhutan launched a national cryptocurrency mining program in 2019. A key advantage of the country is its energy infrastructure. Bhutan actively uses hydropower: numerous hydroelectric plants generate significant amounts of electricity. During the summer months, when river water levels are particularly high, excess power is produced.

Instead of simply exporting this energy at reduced tariffs, the government decided to direct it toward cryptocurrency mining. This approach allowed excess energy resources to be converted into digital assets.

Prime Minister Tshering Tobgay spoke about this strategy in an interview with Al Jazeera in April 2025. According to him, using hydropower to mine bitcoin proved to be an economically justified decision, especially given seasonal electricity surpluses.

As a result, over several years Bhutan managed to accumulate around 13,000 BTC. This is one of the largest examples of government participation in crypto mining.

Use of Cryptocurrency Revenues

According to Prime Minister Tobgay, revenues from cryptocurrencies are already being used to finance various government programs. In particular, part of the funds is directed toward healthcare development, environmental initiatives, and the payment of salaries to public sector employees.

Thus, cryptocurrency has effectively become an additional source of revenue for the national budget. For Bhutan’s relatively small economy this is particularly important, as the country traditionally focuses on sustainable development and an environmentally oriented economic model.

Impact of the 2024 Halving

However, the mining market changed after the Bitcoin Halving event in 2024. As a result of the halving, the mining reward per block dropped to 3.125 BTC. This significantly reduced mining profitability worldwide. Bhutan was no exception. Although the country benefits from inexpensive hydropower, the decline in mining revenues forced a reassessment of the economics of mining operations.

In many parts of the world mining companies began redirecting computing power toward other sectors – primarily artificial intelligence infrastructure and high-performance computing (HPC). Such workloads often prove more profitable than cryptocurrency mining.

A Sovereign Strategy for Managing Crypto Assets

Interestingly, Bhutan’s strategy differs from the behavior of most governments that hold cryptocurrencies. While many states prefer simply to store confiscated or accumulated bitcoin without active operations, Bhutan acts much more flexibly.

Analysts describe this model as “sovereign averaging on exit.” The strategy involves gradually selling assets in small batches rather than liquidating reserves all at once. This approach helps generate a

• minimize market impact,
• stable flow of liquidity,
• and retain a significant portion of cryptocurrency reserves for the long term.

At the same time, Bhutan’s strategy contains an interesting paradox. On one hand, the country regularly sells part of its bitcoin holdings to finance current needs. On the other, the government plans to reserve around 10,000 BTC for the development of a new economic project.

Bitcoin and the Construction of a New City

The project in question is the development of the city of Gelephu – one of Bhutan’s key infrastructure initiatives. Authorities are considering using a significant portion of the country’s cryptocurrency reserves to finance its development. In effect, an unusual model emerges: part of the bitcoin is sold to support the national budget, while another portion is reserved as a long-term investment resource for future projects.

Such a combination of current asset monetization and strategic accumulation is relatively rare among government cryptocurrency holders.

What’s next

Historical data shows that Bhutan’s reserves have gradually declined. While the country once controlled around 13,000 BTC, that figure has now fallen to approximately 5,400 BTC.

It is important to note that a significant portion of sales occurred when the price of bitcoin was far above the mining cost levels of 2019–2021. This suggests that the government was likely locking in profits accumulated during years of mining.

• However, Bhutan’s future strategy will depend on several factors:
• the dynamics of bitcoin’s price,
• the cost of mining after the halving,
• and the scale of funding required for infrastructure projects such as the development of Gelephu.

If the price of bitcoin continues to decline while the country’s investment needs increase, the government may need to accelerate the sale of part of its reserves. In the opposite scenario – if the market grows – Bhutan could again increase the share of assets it holds.

In any case, Bhutan’s experience has already become one of the most interesting examples of how a small state is trying to integrate cryptocurrency into its national economic strategy. While some countries are still only discussing the regulation of digital assets, the Himalayan kingdom has effectively turned bitcoin mining into one of the tools of its national financial policy.