Bhutan Offloads $22 Million in Bitcoin as Mining Costs Surge Post-Halving

This week, the Royal Government of Bhutan moved more than $22 million in Bitcoin from its official wallets. Blockchain analytics...

Quick overview

  • The Royal Government of Bhutan transferred over $22 million in Bitcoin amid falling crypto prices and rising mining costs.
  • The transfers included 100.8 BTC to QCP Capital and 184 BTC in a second move, suggesting a strategic treasury management plan rather than immediate liquidation.
  • Bhutan, now the seventh-largest government holder of Bitcoin, is focusing on cash reserves for major projects as mining profitability declines post-halving.
  • Analysts note Bhutan's approach is strategic, leveraging earned reserves rather than reacting to market fluctuations.

This week, the Royal Government of Bhutan moved more than $22 million in Bitcoin from its official wallets. Blockchain analytics firm Arkham Intelligence spotted the transfers as Bhutan faces falling crypto prices and rising mining costs.

On-chain data shows the transfers happened in two steps: first, 100.8 BTC (about $8.3 million) went to Singapore’s QCP Capital last Friday. Then, 184 BTC ($14 million) was moved on Wednesday.

Strategic Reallocation or Outright Liquidation?

Although sending funds to firms like QCP Capital often means a sale is coming, analysts think Bhutan is following a careful treasury management plan.

  • Institutional Yield: Some experts believe the funds may be used for yield-generation or hedging via derivatives rather than immediate liquidation.
  • Periodic “Chunks”: Historically, Bhutan has offloaded BTC in batches of roughly $50 million, notably during the price spikes of late 2025.
  • Market Context: The timing is particularly notable as Bitcoin has retreated approximately 42% from its October 2024 all-time high of $126,080, currently hovering near the $72,000 mark.

The Rising Cost of Himalayan Mining

When Bhutan entered crypto in 2019, many praised its use of hydroelectric power as a smart green policy. But the 2024 halving has changed the economics for Druk Holding and Investments (DHI), the state’s investment group.

Annual BTC Mined ~8,200 BTC ~300 BTC (2024)
Cost per BTC Standard Roughly Doubled
Strategic Focus Accumulation Efficiency & Reserve Management

Arkham says Bhutan mined most of its Bitcoin when prices were much lower. Now that mining is less profitable after the halving, Bhutan seems to be focusing on having enough cash for big expenses and projects like the Gelephu Mindfulness City.

Where Bhutan Stands in the Global Hierarchy

Even after these recent sales, Bhutan is still a major player in government-held crypto. It is now the world’s seventh-largest government holder of Bitcoin.

  1. United States (~200,000 BTC)
  2. China (~194,000 BTC)
  3. United Kingdom (~61,000 BTC)
  4. Ukraine (~46,351 BTC)
  5. El Salvador (~7,550 BTC)
  6. United Arab Emirates
  7. Bhutan (Current holdings estimated at ~5,700 BTC)

“Bhutan’s approach remains strategic rather than reactive,” said one blockchain analyst. “Unlike nations that hold seized assets, Bhutan’s reserves are ‘earned’ through infrastructure, giving them a different risk tolerance and long-term perspective.”

With the crypto market facing challenges like US government uncertainty and changing global liquidity, many are watching Bhutan’s wallets for the next move.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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