A few years ago, Bhutan was the world's most unlikely Bitcoin story. A tiny Himalayan kingdom — population under 800,000 — running a sovereign Bitcoin mining operation powered entirely by its own hydropower. It was genuinely fascinating.Now, the data tells a different story.Bhutan has quietly sold about 70% of the roughly 13,000 Bitcoin it held in October 2024, reducing its stash to 3,954 BTC worth about $280.6 million. The kingdom appears to have slowed or halted its hydropower-backed Bitcoin mining, with no major new inflows recorded in more than a year and no public comment from its sovereign wealth fund, Druk Holding and Investments.
Bhutan's liquidation contrasts with other major institutional and sovereign players that are adding to crypto and gold holdings, underscoring the economic strain on small-scale state Bitcoin mining as prices, difficulty, and halving pressures squeeze margins.
The numbers are striking. About $215.7 million of that reduction happened in 2026 alone, indicating active liquidation. It's been over a year since the country saw any mining inflows above $100,000, suggesting its hydropower-powered Bitcoin mining operations may have slowed or stopped altogether.
What happened? A few things likely converging: the April 2024 halving cut mining revenue in half. Bitcoin's price range has been compressed for months. And running a sovereign mining program requires consistent capital — something a small economy like Bhutan may not be able to sustain indefinitely when margins are tight.Here's what's worth noting though: Bhutan still holds nearly 4,000 BTC. That's not zero. They're not fully out. Whether this is a strategic wind-down, a cash flow necessity, or a repositioning — we don't know. Druk Holding has said nothing publicly.What it does confirm is that sovereign Bitcoin mining is harder than it looked when BTC was at $100K+. The economics change fast when price drops and difficulty climbs.One of crypto's most interesting experiments. Still worth watching.