The Himalayan Kingdom Trims Another 100 BTC
The Royal Government of Bhutan sent another 100 Bitcoin, worth approximately $6.7 million, to a WBTC merchant deposit address linked to QCP Capital, according to on-chain data tracked by Arkham Intelligence. The transfer extends a pattern that has seen Bhutan move more than $22 million in Bitcoin to the Singapore-based institutional market maker over the past two weeks.
This is not a panic dump. The transactions follow a deliberate cadence: 100.8 BTC worth $8.3 million moved to QCP Capital two weeks ago, followed by 184 BTC valued at $14 million last week, and now this latest 100 BTC clip. Each sale lands at the same OTC counterparty, suggesting a structured liquidation strategy rather than an emergency fire sale.
Bhutan's on-chain portfolio, as tracked by Arkham, now sits at roughly $381 million, with Bitcoin accounting for virtually all of it. Ethereum holdings amount to a negligible $49,000.
From Fourth to Seventh: How Bhutan's BTC Stash Shrank
When Arkham Intelligence first publicly identified Bhutan's wallets in September 2024, the kingdom held approximately 13,295 BTC, making it the fourth-largest nation-state Bitcoin holder. That position placed a country with a $3 billion GDP alongside the United States (198,109 BTC), China (190,000 BTC), and the UK (61,000 BTC) in the sovereign Bitcoin rankings.
The sell-off since then has been significant. Bhutan's holdings have fallen to an estimated 5,700 BTC, dropping the kingdom to approximately seventh place globally. Arkham's data reveals a pattern: Bhutan periodically sells in clips of around $50 million, with a particularly heavy period of selling in mid-to-late September 2025 and now this renewed February 2026 activity.
The timing matters. Bitcoin is trading near $70,000 after a sharp drawdown, and Bhutan's selling is happening into weakness rather than strength. For a country that mined most of its Bitcoin using cheap hydropower, selling at $70K still represents significant profit on coins that cost roughly $37,856 to produce post-halving. But it is a far cry from the $100,000+ prices available just months ago.
The Halving Squeezed Bhutan's Mining Machine
Bhutan's Bitcoin operation is unlike any other in the world. The kingdom mines BTC through Druk Holding & Investments (DHI), the government's commercial arm, using abundant Himalayan hydropower. The operation is entirely green, powered by rivers flowing from some of the highest peaks on Earth.
But the April 2024 halving changed the math. Block rewards dropped from 6.25 BTC to 3.125 BTC, effectively doubling the cost of each mined Bitcoin overnight. Bhutan currently generates between 55 and 75 BTC per week from its mining pools, which include AntPool, Braiins, and Foundry. At current prices near $70,000, that translates to $3.6 million to $4.9 million in weekly mining revenue.
The kingdom's partnership with Bitdeer, the Bitmain spinoff led by co-founder Jihan Wu, is central to the expansion plan. A $500 million closed-ended fund backs the development of 600MW of mining capacity, with the first 100MW facility in Gedu already operational and a second 500MW facility in Jigmeling targeting full capacity by late 2026. The scale is ambitious for a nation of fewer than 800,000 people.
Yet even with cheap hydropower, the halving's impact on per-unit economics is real. When each block produces half the Bitcoin but operational costs remain fixed, the only variable that keeps the operation profitable is price. At $70,000, the margins are comfortable but shrinking. At $50,000, they would be razor-thin.
What This Sell-Off Signals for Sovereign Bitcoin Strategy
Bhutan is one of only a handful of nation-states that actively mines and manages a Bitcoin treasury. El Salvador (approximately 6,002 BTC) takes a buy-and-hold approach with regular market purchases. The United States holds its 198,109 BTC primarily from seizures, not mining. Bhutan is unique in that it produces Bitcoin as a national industry and then manages the resulting portfolio like a sovereign wealth fund.
The choice of QCP Capital as the OTC counterparty is notable. QCP is a regulated Singapore-based trading firm specializing in structured products and OTC deals for institutional and sovereign clients. Sending 100 BTC clips to a WBTC merchant address suggests Bhutan may be converting some holdings to wrapped Bitcoin for DeFi yield or collateral purposes, not just selling into fiat.
This nuance matters. Bhutan is not simply dumping coins on Binance. The government is using institutional-grade infrastructure to manage its position, which suggests a level of sophistication that matches or exceeds most corporate treasury operations in the crypto space.
The Broader Implications for Bitcoin Supply and Crypto Adoption
When a nation-state sells Bitcoin, the market pays attention. Bhutan's 5,700 remaining BTC is modest in absolute terms, but the signaling effect is outsized. If post-halving mining economics are pressuring even a green-energy miner with some of the cheapest electricity on the planet, the implications for higher-cost miners are severe.
The supply-side pressure from the halving continues to play out. Miners globally face the same squeeze: half the block reward, same operational costs, and a Bitcoin price that, while still elevated historically, is well below the cycle highs that many operations were underwritten against.
For crypto holders and crypto card users, Bhutan's story is a reminder that Bitcoin's supply dynamics are not abstract. Real entities, from nations to mining companies, are making real decisions about when to hold and when to sell. Those decisions ripple through markets, affecting the price environment for everyone from institutional traders to retail users spending crypto through their daily Binance or Coinbase cards.
Bhutan's parallel move into crypto payments is worth noting. In January 2026, the kingdom expanded the use of crypto payments throughout its tourism sector, with Binance Pay facilitating transactions for visitors. The same government selling Bitcoin from its treasury is simultaneously building crypto payment infrastructure for its economy, a dual strategy that treats Bitcoin as both a liquid asset and a payment rail.
FAQ
How much Bitcoin does Bhutan still hold? According to Arkham Intelligence, Bhutan's government wallets hold approximately 5,700 BTC, valued at roughly $381 million. This is down from a peak of 13,295 BTC in October 2024.
Why is Bhutan selling Bitcoin? Post-halving mining economics have squeezed profitability. The April 2024 halving cut block rewards in half, nearly doubling production costs. Bhutan appears to be managing its treasury by periodically liquidating portions through institutional OTC channels.
How does Bhutan mine Bitcoin? Bhutan mines through Druk Holding & Investments using hydroelectric power from Himalayan rivers. The operation currently generates 55 to 75 BTC per week and is expanding to 600MW capacity through a $500 million partnership with Bitdeer.
Is Bhutan abandoning Bitcoin? No. While selling portions of its treasury, Bhutan is simultaneously expanding mining capacity and integrating crypto payments into its tourism economy. The sell-off appears to be portfolio management, not an exit.
Overview
Bhutan has extended its Bitcoin sell-off with a fresh $6.7 million transfer of 100 BTC to Singapore market maker QCP Capital, bringing total recent sales past $22 million. The kingdom's holdings have dropped from 13,295 BTC at their peak to roughly 5,700 BTC as post-halving mining economics pressure even the world's cheapest green-energy miner. Despite the selling, Bhutan is expanding its mining capacity to 600MW and integrating crypto payments into its tourism sector, signaling a long-term commitment to Bitcoin as both a treasury asset and economic infrastructure.
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