Bhutan's Bitcoin Holdings Plummet Amid Industry Pressure

The Royal Government of Bhutan has made a significant move in the cryptocurrency market by selling approximately 70% of its bitcoin holdings over the past 18 months. According to recent data, the country's stash now stands at around 3,954 BTC worth approximately $280.6 million, down from the initial 13,000 BTC held in October 2024.

The majority of these sales took place this year alone, with a total of $215.7 million moved out of Bhutan's bitcoin holdings since January. This is a stark contrast to other major institutional players that are continuing to add to their crypto and gold reserves, despite the current economic challenges facing small-scale state-backed mining operations.

Bhutan's decision to slow or halt its hydropower-backed bitcoin mining activities may be due to the increasing pressure on margins caused by rising prices, difficulty levels, and halving events. As a result, it appears that Bhutan is no longer actively participating in the mining of new bitcoins, with no major inflows recorded over the past year.

The Royal Government of Bhutan's transfer of 319.7 BTC worth $22.68 million to two separate addresses on Thursday highlights the ongoing liquidation of its bitcoin holdings. The majority of these funds were sent to a wallet previously used for routing sales through Galaxy Digital and OKX, while the remaining amount was transferred to an unmarked address.