Bhutan's Quiet Bitcoin Sell-Off Continues Amidst Institutional Accumulation

Bhutan, a small kingdom nestled in the Himalayas, has been slowly unwinding its Bitcoin reserve over the past 18 months. According to data from Arkham Intelligence, Bhutan's holdings have decreased by approximately 70%, from around 13,000 BTC to just 3,954 BTC.

This reduction is significant, with over $215 million in BTC having moved out of Bhutan's holding addresses in 2026 alone. The majority of these outflows have been routed to unlabeled wallets or exchanges such as Galaxy Digital and OKX, suggesting direct market sales rather than simple fund repositioning.

The economics behind this shift are clear: with the current low price of Bitcoin near $71,000 and high network difficulty, margins for Bhutan's hydropower-backed mining operation have compressed sharply. It appears that selling hydropower directly to neighboring India may now generate more predictable revenue than mining Bitcoin.

This move stands out as institutional buyers continue to accumulate Bitcoin. Strategy, a prominent investor, recently purchased 4,871 BTC for $330 million in a single weekend, bringing its total holdings to over 766,000 BTC. The contrast is stark when considering Bhutan's retreat from the cryptocurrency market.