Bhutan, a Himalayan nation with fewer than a million people, once built one of the world's largest sovereign Bitcoin treasuries through hydropower mining. By late 2024, the stash peaked at 13,000 BTC, valued at $1.88 billion. That picture has flipped sharply: on-chain data now shows reserves have slumped 66% to just 4,453 BTC, worth around $315 million.
Arkham Intelligence Tracks Accelerating Sales
Blockchain analytics firm Arkham Intelligence first flagged the large outflows. In January, monthly liquidation batches stayed modest at $5 million–$15 million. Come March, single transfers surged to as high as $44 million. Over the past seven days alone, sales totaled $72 million, including one movement of 595.8 BTC. The pace marks a clear shift from the more conservative approach seen earlier this year.
OTC Channel via QCP Capital Avoids Market Stress
Bhutan has been routing most of its sales through over-the-counter transactions, primarily to Singapore-based trading firm QCP Capital. In 2026 alone, QCP received over $16.6 million worth of BTC across three transfers, suggesting a formal OTC arrangement. This channel lets the government offload large volumes without rattling spot prices. During March, Bitcoin traded between $65,000 and $75,000, still far below the $119,000 all-time high. The consistent outflows indicate a calculated effort to keep market impact minimal.
Wallet monitoring also shows little to no incoming mining proceeds since the last Bitcoin halving. That could mean the state-run mining program has been suspended or wound down—though no official confirmation exists. The pivot may reflect a broader reassessment of Bhutan's national Bitcoin allocation.
Gelephu Mindfulness City Pledge in Jeopardy
In December, Bhutan pledged up to 10,000 BTC to fund the Gelephu Mindfulness City, a planned smart urban ecosystem. At the time, the treasury was much larger. Now reserves have fallen below half that amount. To meet the original commitment, the government would need to stop selling and start buying more BTC. The current liquidation rate suggests officials are prioritizing immediate cash over long-term holding.
Officials previously touted the near-zero cost of hydropower mining, framing Bitcoin gains as nearly pure profit for state finances. But the recent acceleration in sales turns that narrative on its head. Wednesday's latest transfer adds another chapter to Bhutan's unusual experiment in sovereign crypto management—a case study in how small states juggle innovation pledges with real-world liquidity needs.