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Bhutan Liquidates $22 Million in Bitcoin amid Market Challenges

Crypto

Business Honor
05 Febuary, 2026

Himalayan Kingdom Adjusts Cryptocurrency Strategy as Mining Costs and Prices Fluctuate.

A large part of Bhutan's government-held Bitcoin, 284.8 BTC or roughly $22.3 million in USD, has been sold to QCP Capital, Singapore's largest crypto trading firm, at a time when the Himalayan nation continues to experience ongoing complexity in crypto mining and declining prices in the market. According to Arkham Intelligence, who tracks crypto assets, "the amount of Bitcoin that Bhutan has in reserve has decreased dramatically since it started mining Bitcoin with hydroelectricity in 2019." Bitcoin reserves previously peaked at 13,295 BTC in October; Bhutan now has approximately 5,700 BTC, having thus fallen from seventh in global Bitcoin reserves to an as-of-yet unranked position.

This series of transactions is representative of the broader trends in a global crypto market that is struggling. Since the 2024 Bitcoin Halving event, the marginal cost of producing Bitcoin has increased to the point that Bhutan is not able to produce the level of Bitcoin mined in 2023 (which was 8,200 BTC) and clearly, the current production levels are way below that. Since the peak price of Bitcoin in October 2025 when prices reached a record high of $126,000, the price of Bitcoin has fallen to approximately $72,000, a decline of more than 40%.

Analysts believe while these transfers are executed in a systematic manner, most typically in increments of $50 million each, such as a normal course of liquidation rather than a large, sudden liquidation of Bitcoin holdings. The transfers continue as the global macro outlook remains weak, and a substantial increase in investors looking for safe havens in precious metals such as gold and silver, has led to a continuing deterioration in investor confidence across crypto markets.