Bhutan moved $22.4 million in Bitcoin from sovereign wallets this week, including in direct transactions with institutional market maker QCP Capital. The Himalayan nation’s cryptocurrency portfolio has fallen from a peak of $1.4 billion to around $412 million.
The leak continues a pattern of periodic liquidations by the Bhutanese royal government, which began mining and holding Bitcoin in 2019. These recent trades highlight the questions facing sovereign crypto strategies amid continued market pressures.
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Recent Bitcoin sales and trading patterns
Blockchain analytics platform Arcam has confirmed the sale of Bitcoin. The two major outflows were from Druk Holding Investments (DHI), Bhutan’s state-backed investment arm. The transactions included 184.03 BTC (valued at $14.09 million) and 100.82 BTC (valued at $8.31 million) from 5 days ago. The latter was sent directly to a labeled address associated with QCP Capital, a Singapore-based institutional market maker active in derivatives and spot markets.
Bhutan typically sells Bitcoin in tranches of about $50 million, according to Arkham’s analysis. Historical data shows that mid-to-late September 2025 saw particularly strong sales, with multiple transactions exceeding $50 million each. Current weekly outflows of $22.4 million are lower than past sales, suggesting more cautious liquidations or reduced holdings.
The QCP Capital deal suggests a strategic liquidation rather than a distressed sale. Market makers such as QCP enable large block trades without causing significant market disruption. This allows sovereigns to exit positions with minimal impact on prices, unlike direct exchange deposits, which can trigger sharper reactions.
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Bitcoin mining business and profitability in Bhutan
Bhutan’s Bitcoin strategy began in 2019, when DHI launched a mining operation that leveraged the country’s rich hydropower resources. Arkam estimates that Bhutan has generated more than $765 million in profits since Bitcoin’s inception, while total energy costs were around $120 million. Hydropower keeps costs low compared to competitors that rely on fossil fuels.
The Bitcoin halving in 2024 fundamentally changed the mining economics. This event, which occurs approximately every four years, cuts block rewards in half. The halving effectively doubles the cost of mining one Bitcoin, reducing operational efficiency. According to the data, Bhutan will have extracted most of its resources by April 2024 and has since drastically cut back on production.
Before profit margins halved, Bhutan was able to accumulate large amounts of assets at favorable costs. However, the drop in efficiency after the halving likely encouraged countries to monetize their reserves rather than continue with energy-intensive extraction at lower returns. This strategic shift from accumulation to selective distribution reflects broader industry trends as sector profitability is compressed.
Portfolio reduction and current holdings
Bhutan’s cryptocurrency portfolio has experienced a dramatic contraction. DHI’s on-chain assets are currently around $412 million, down more than 70% from its peak of $1.4 billion, according to Arcam Intelligence data. The majority of the portfolio consists of 5,700 BTC, with only small holdings in Ethereum and other tokens.
The decline in the portfolio is due to continued sales and falling Bitcoin prices. Strategic liquidations due to profits and financial demands eroded some of the value, but broader market conditions in 2025 and early 2026 also contributed. Bhutan’s holdings peak coincided with the high of Bitcoin prices, and the rate of decline widened as the price corrected.
According to transaction history, DHI’s main exchange partners are Binance ($261 million in remittances, 68% of activity) and Celsius Network ($118 million (31%)). A small amount moved through the Kraken. These exchange transactions, combined with direct transactions with market makers, demonstrate Bhutan’s sophisticated approach to treasury management.
The Druk Holding and Investments entity manages these digital assets alongside traditional investments as part of Bhutan’s broader diversification strategy. By integrating cryptocurrencies into the sovereign national treasury, Bhutan will become part of a select group of countries directly involved in the digital asset market. Whether Bhutan’s continued liquidations indicate a complete withdrawal or just a portfolio rebalancing remains an open question as observers track trends in the adoption of sovereign cryptocurrencies.
