Bhutan Liquidates $22 Million in Bitcoin During Crypto Crash

Bhutan continues selling its Bitcoin during the crash

The small Himalayan kingdom of Bhutan is making headlines again. According to on-chain data analyzed by Arkham Intelligence, government wallets transferred $22.4 million worth of Bitcoin over the past week—a continuation of the selling strategy observed for several months.

These transactions, executed in two parts (184 BTC on February 4, 100.8 BTC on January 30), were sent directly to market maker QCP Capital, suggesting an orderly liquidation rather than panic selling.

A methodical selling strategy

Bhutan isn’t selling randomly. Arkham data reveals a clear pattern: the kingdom liquidates its BTC in approximately $50 million tranches, with a particularly active period recorded from mid-September to late October 2025.

This programmatic selling approach resembles a reverse DCA—a strategy that smooths the exit price and avoids impacting the market too heavily with massive orders.

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A national treasury built on hydroelectric mining

How did a country of 800,000 people become a Bitcoin player? The answer lies in two words: abundant hydroelectricity. Bhutan, nicknamed the “land of happiness,” has immense hydraulic resources thanks to its Himalayan rivers.

Since 2019, the government—through its sovereign fund Druk Holding—has invested in Bitcoin mining, leveraging nearly free electricity and a cool climate ideal for cooling machines.

Arkham’s estimated production figures:

• 2021: ~2,500 BTC
• 2022: ~1,800 BTC
• 2023: ~8,200 BTC (peak production)
• 2024: ~3,000 BTC (post-halving)

In total, Bhutan has generated over $765 million in mining profits, for estimated energy costs of only $120 million—an exceptional ratio.

The 2024 halving impact

The April 2024 halving cut the mining reward in half (from 6.25 to 3.125 BTC per block), mechanically doubling the production cost of one Bitcoin. For Bhutan, this translated into falling annual production: from 8,200 BTC in 2023 to approximately 3,000 in 2024.

This new economic reality likely explains the gradual liquidation strategy. Rather than continuing to accumulate in a less favorable context, the kingdom is monetizing part of its reserves.

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$405 million still in reserve

Despite recent sales, Bhutan remains a significant Bitcoin holder. With approximately 5,600 BTC valued at $405 million at current prices (~$72,000), the kingdom ranks among the nations most exposed to cryptocurrencies relative to its GDP.

This position makes Bhutan a unique case study: a sovereign state that bet on Bitcoin as a revenue source, using its natural resources to “mine” exportable value.

Market context: Bitcoin down 40% from ATH

Bhutan’s sales come amid a tense market context. Bitcoin has lost nearly 40% since its October 2025 peak, falling from $120,000 to around $72,000. This correction revives fears of a prolonged bear cycle.

According to K33 Research, some technical indicators suggest a possible bottom:

• High spot volumes (>$8 billion on February 2)
• Extreme negative funding rates on derivatives
• RSI in oversold territory

But analysts remain cautious. Critical support sits around $74,000, with downside risk toward $69,000 or even the 200-week moving average (~$58,000) if broken.

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Bhutan vs. El Salvador: two visions of national Bitcoin

Bhutan offers an interesting contrast with El Salvador, the other country known for its Bitcoin exposure. Where President Bukele made BTC legal tender and continues accumulating despite unrealized losses, Bhutan takes a more pragmatic approach: mine when profitable, sell when markets allow.

This “commercial” rather than ideological strategy could prove more prudent long-term, especially if the bear market extends.

Conclusion: the end of the Himalayan mining dream?

Bhutan’s sales don’t signal Bitcoin abandonment. With $405 million still in reserve and operational mining infrastructure, the kingdom remains crypto-exposed. But the 2024 halving and price decline have clearly changed the economic equation.

For observers, Bhutan illustrates an often-forgotten reality: Bitcoin mining is a business, not a religion. When conditions change, even states adjust their strategy.