Bhutan is rapidly reducing its Bitcoin reserves accumulated through hydropower mining. By end-2024, the kingdom held a peak of 13,000 BTC, worth roughly $1.5 billion at prices near $119,000 per coin. That stash has now shrunk to 5,400 BTC, valued at approximately $374 million—implying sales of 7,600 BTC and a $1.1 billion reduction.
In 2026 so far, Bhutan has sold $42.5 million worth of Bitcoin. February was particularly active, with transfers totaling about $30.7 million across transactions ranging from $5 million to $10 million each. On March 9, another 175 BTC ($11.85 million) was sent to select recipients, marking another notable shift in the portfolio.
OTC Sales and Zero-Cost Mining Edge
Unlike conventional reserve sales via public exchanges, Bhutan opts for institutional over-the-counter (OTC) deals, mostly through entities tied to QCP Capital and Binance. This discreet approach sidesteps spot-market volatility and locks in predetermined liquidity.
What truly sets Bhutan apart is its virtually zero mining cost. Powered by surplus hydroelectricity, each Bitcoin produced required no extra energy input. Druk Holding and Investments said the sales were conducted on a near-zero cost basis, meaning nearly every coin sold delivered pure profit. Without the pressure to maintain long-term reserves, Bhutan could sell at favorable price points regardless of market sentiment. This state-backed hydro mining model has proven to be a direct and effective revenue generator.
Funding Gap for Gelephu Mindfulness City Emerges
In late 2025, Bhutan pledged up to 10,000 BTC to finance the Gelephu Mindfulness City, a high-profile special economic zone showcasing digital assets as national reserves. With only 5,400 BTC left, current holdings fall short of that earlier commitment. The mismatch suggests either a shift in financing strategy for the flagship project or that the target was always symbolic. It remains unclear whether Bhutan will continue mining new Bitcoin while selling portions, or adjust its reserve management approach.
As one of the first countries with a state-driven Bitcoin mining program, Bhutan is now gradually releasing its reserves through institutional OTC channels. The long-term economic impact of this hydro-powered venture—and its potential to support further national infrastructure—will become clearer in the near future.