Bhutan Reduces Bitcoin Holdings Amid Shifting Economic Landscape

Bhutan has been gradually selling off its Bitcoin reserve over the past 18 months, with a significant portion of its holdings being transferred to unnamed wallets or exchanged for other cryptocurrencies. According to data from Arkham Intelligence, the country's stash of Bitcoin has dwindled from approximately 13,000 BTC in October 2024 to just 3,954 BTC as of now.

The decline in Bhutan's Bitcoin reserves is attributed to its mining operation, which was once a lucrative source of revenue for the country. However, with network difficulty at all-time highs and post-halving block rewards cut to 3.125 BTC, margins have compressed sharply, making it less viable for the country to continue mining Bitcoin.

The economic shift in Bhutan's approach is clear: selling hydropower directly to neighboring India may now generate more predictable revenue than mining Bitcoin. This strategic shift sets Bhutan apart from other institutional and sovereign-level holders, which have continued to accumulate Bitcoin despite the decline in value.