Bhutan's Bitcoin Holdings Plunge, Concerns Grow Among Investors

Bhutan, a small country nestled in the Himalayas, has been a surprise player in the world of cryptocurrency mining. The kingdom's hydroelectric power plants have provided an abundance of excess electricity, which it has used to mine bitcoin since 2020.

At its peak, Bhutan was among the top three largest holders of bitcoin, behind only the United States and China. However, recent data shows that the kingdom's holdings have declined significantly, causing concern among investors.

The sell-off of crypto assets by Bhutan is in stark contrast to its previous plans. In December 2024, the government announced that it had allocated $1 billion in bitcoins to develop Gelephu Mindfulness City (GMC), a special economic zone that would use digital assets as financial reserves.

However, the recent pace of crypto-asset withdrawals from Bhutan's reserves has been rapid. In January 2025, the state sold 285 BTC, followed by 100 coins in February and 1,071 bitcoins in March. As a result, Bhutan has dropped to seventh place among the largest holders of cryptocurrencies.