A wallet linked to the Bhutanese government transferred approximately 160 BTC worth roughly $11 million to a trading platform, according to on-chain data. The transaction fits the nation’s established pattern of selling Bitcoin in tranches between $5 million and $10 million. As one of the world’s largest sovereign Bitcoin miners, Bhutan’s repeated sell-offs have sparked debate: Is the Himalayan kingdom losing faith in crypto, or is this routine treasury optimization?
From 13,000 to 5,700 BTC: A Sharply Reduced Hoard
Bhutan began Bitcoin mining in 2019, leveraging ultra-cheap hydropower (under $0.02 per kWh) to accumulate one of the lowest-cost BTC reserves globally. At its peak, the stash exceeded 13,000 BTC, valued at over $1.3 billion — roughly 40–50% of the country’s $2.8 billion GDP. However, recent data reveals steady divestment: current holdings stand at only 5,700 BTC. In February 2026 alone, Bhutan sold more than $30 million worth of Bitcoin.
Post-Halving Economics and Fiscal Needs Drive Sales
The April 2024 Bitcoin halving slashed block rewards by half, raising production costs and squeezing mining profitability globally. For Bhutan, this triggered a shift from aggressive accumulation to careful treasury management. Proceeds from sales are reportedly funneled into national initiatives such as Gelephu Mindfulness City, a development project aimed at boosting the economy and attracting foreign investment. Even after the recent reductions, Bhutan still holds hundreds of millions of dollars in BTC, making it one of the largest sovereign holders worldwide.
Market Shrugs Off the News as BTC Rallies
Contrary to expectations, the sell-off news did not dampen Bitcoin’s price. BTC climbed above $70,000, gaining 4.3% in 24 hours and outperforming the broader crypto market. Analysts attribute the rally to reduced derivatives selling pressure: liquidations dropped 49% to $79 million, while trading volume surged nearly 39% to $49 billion, signaling strong buyer demand. The next major catalyst is the March 12 U.S. CPI report, which could sway risk assets, including crypto.
Rather than indicating panic, Bhutan’s approach reflects a long-term strategy of treating Bitcoin as a commodity-style reserve asset — mined with renewable energy, then sold incrementally to balance national finances. For a small economy, holding a volatile asset worth nearly half its GDP is inherently risky; gradual sales provide fiscal flexibility while maintaining significant exposure.