Bhutan transferred Bitcoin worth US$22.4 million from the state wallet this week, including a direct transaction to the institutional market maker QCP Capital. The Himalayan nation's crypto portfolio has dropped from a peak of US$1.4 billion to around US$412 million.
The outflow continues the periodic liquidation pattern by the Royal Government of Bhutan, which began mining and storing Bitcoin since 2019. Recent transactions highlight various questions about the country's cryptocurrency asset strategy amid ongoing market pressures.
Recent Bitcoin Sales and Transaction Patterns
The blockchain analytics platform Arkham confirms these Bitcoin sales. Two large outflows come from Druk Holding Investments (DHI), the state investment agency of Bhutan. These transactions include 184.03 BTC valued at US$14.09 million, and 100.82 BTC worth US$8.31 million, five days prior. The second transaction directly went to an address associated with QCP Capital, an institutional market maker from Singapore active in the derivatives and spot markets.
According to Arkham analysis, Bhutan typically sells Bitcoin in amounts around US$50 million per batch. Historical data shows that the largest sales mostly occurred between mid to late September 2025, with several transactions exceeding US$50 million each. The weekly outflow of US$22.4 million this time is smaller than before, indicating a more measured liquidation or indeed that remaining assets are becoming fewer.
QCP Capital transactions indicate strategic liquidation, not due to market pressure. Market makers like QCP facilitate large block trades without significantly disrupting market prices. This method allows the country to exit positions without putting high price pressure, unlike direct deposits to exchanges that could trigger sharper market reactions.
Bhutan's Bitcoin Miner Operations and Profitability
Bhutan's Bitcoin strategy began in 2019 when DHI launched Bitcoin mining operations utilizing the abundant hydro energy in the country. Arkham estimates Bhutan has made over US$765 million in profits from Bitcoin since then, while total energy costs are around US$120 million. Hydro energy keeps their mining costs low compared to other miners who use fossil fuels.
The Bitcoin halving in 2024 fundamentally changes the mining economy. This event, which occurs about every four years, cuts the block reward in half. Halving makes the cost of mining one Bitcoin double, thus making operations less efficient. Data shows Bhutan mined most of its holdings before April 2024 and drastically reduced production afterwards.
The profit margin before halving allowed Bhutan to accumulate large amounts of Bitcoin at a low cost. However, the decrease in efficiency after halving is likely pushing the country to start releasing reserves rather than continue mining at high costs with low yields. This shift in strategy from accumulation to selective selling reflects an industry trend toward tightening profitability.
Current Portfolio and Ownership Decline
Bhutan's crypto asset portfolio has drastically decreased. Arkham Intelligence data records DHI's on-chain assets currently at around US$412 million, down more than 70% from its peak of US$1.4 billion. The portfolio is now dominated by about 5,700 BTC, while holdings of Ethereum and other tokens are nearly non-existent.
The portfolio decline is due to ongoing sales and also the depreciation of Bitcoin prices. Some value is lost due to strategic liquidation for profit or fiscal needs, but general market conditions throughout 2025 and early 2026 also play a role. Bhutan's previous peak position aligned with Bitcoin's highest prices, so price corrections further amplified their asset percentage decline.
Transaction history shows DHI's main partners on the exchange are Binance—with a transfer value of US$261 million (68% of activity)—and Celsius Network, valued at US$118 million (31%). There are also smaller transactions through Kraken. Interactions with these exchanges, combined with direct transactions to market makers, demonstrate sophisticated treasury management from Bhutan.
Druk Holding and Investments manages these digital assets alongside traditional investment portfolios as part of Bhutan's economic diversification strategy. The integration of crypto assets into the national treasury places Bhutan among the few countries directly involved in the digital asset market. Whether this ongoing liquidation means a total exit or just a portfolio adjustment remains a question as observers monitor the trend of crypto adoption by the state.