Bhutan Quietly Accelerates Bitcoin Sales as Treasury Strategy Shifts
Bhutan has continued steadily reducing its sovereign Bitcoin reserves, transferring another 90 BTC worth roughly $7 million as the Himalayan kingdom deepens a controlled liquidation strategy that has now become one of the largest state-led crypto treasury drawdowns of 2026.
Summary:
- Bhutan transferred another 90 BTC as sovereign crypto sales continue accelerating.
- Analysts estimate the country could fully deplete its Bitcoin reserves by September 2026.
- Most proceeds are expected to support infrastructure spending and national development projects.
According to on-chain tracking data from Arkham Intelligence, Bhutan’s sovereign investment arm, Druk Holding & Investments, has now moved more than $237 million worth of Bitcoin this year alone through a series of carefully structured transactions designed to minimize market disruption.
Bhutan’s Bitcoin Treasury Continues Shrinking
The latest movement fits into a broader pattern that has emerged steadily throughout 2026.
Arkham analysts estimate Bhutan has been liquidating approximately $50 million worth of Bitcoin per month, primarily through small, discreet transfers routed via institutional trading channels rather than public exchange order books.
If the current pace continues, analysts believe Bhutan’s remaining sovereign Bitcoin reserves could be almost entirely exhausted by the end of September.
That would mark a dramatic reversal from late 2024, when Bhutan ranked among the world’s largest sovereign Bitcoin holders with holdings peaking near 13,390 BTC.
Unlike many governments that accumulated crypto through seizures or legal enforcement actions, Bhutan built most of its Bitcoin reserves through state-backed mining operations powered by the country’s abundant hydropower infrastructure.
That low-cost mining base gave Bhutan one of the cheapest sovereign Bitcoin acquisition costs globally.
State Mining Strategy Generates Massive Profit
Despite the aggressive reduction in reserves, the strategy has proven highly profitable for the Bhutanese government.
Because much of the Bitcoin was mined domestically using low-cost renewable energy, Bhutan’s average cost basis remains significantly below current market prices.
Analysts estimate that if Bhutan fully liquidates its remaining holdings near current Bitcoin valuations, total realized profits from the sovereign mining program could exceed roughly $767 million.
For a relatively small economy like Bhutan, that level of capital generation represents a substantial macroeconomic resource.
The strategy increasingly reflects how smaller nations are beginning to treat digital assets not as speculative reserves, but as sovereign balance-sheet tools capable of funding long-term infrastructure and development initiatives.
Bhutan Avoids Market Shock Through OTC Selling
One of the more notable aspects of Bhutan’s liquidation strategy is how carefully the government appears to be managing execution risk.
Rather than unloading large quantities of Bitcoin directly onto public exchanges, the sovereign wealth fund has largely relied on over-the-counter trading desks, institutional market makers, and private liquidity channels.
READ MORE: American Bitcoin Doubles Down on BTC Accumulation Amid Market Turbulence
Analysts tracking the flows say the transfers are typically broken into smaller batches ranging between roughly $5 million and $10 million per transaction.
That approach allows Bhutan to gradually reduce exposure while minimizing downward pressure on Bitcoin’s spot market price.
Institutional trading firms and OTC desks reportedly absorb much of the supply privately before redistributing it across broader market liquidity pools.
The strategy sharply contrasts with previous government-led Bitcoin liquidations, which occasionally triggered visible market volatility when large reserves moved suddenly onto exchanges.
Bitcoin Funds Bhutan’s Future Infrastructure
The liquidations also appear tied directly to Bhutan’s broader national development strategy.
Rather than attempting to maximize speculative upside by holding Bitcoin indefinitely, the government increasingly seems focused on converting digital asset gains into real-world infrastructure spending.
A significant portion of the proceeds is expected to support national budgets alongside the development of Gelephu Mindfulness City – a large-scale economic zone designed to integrate digital finance, sustainable infrastructure, and technology investment into Bhutan’s long-term economic model.
Officials have previously framed the project as an attempt to modernize Bhutan’s economy while preserving the country’s broader philosophy around sustainability and social well-being.
The initiative also reflects a growing trend among sovereign entities using crypto-generated capital to finance strategic national projects instead of simply treating digital assets as reserve holdings.
Sovereign Bitcoin Strategies Enter a New Phase
Bhutan’s drawdown comes at a time when sovereign approaches toward Bitcoin are becoming increasingly divergent globally.
While some governments continue exploring strategic Bitcoin accumulation models, Bhutan appears to be demonstrating a different playbook – using sovereign mining operations as a mechanism to generate long-term development capital rather than permanent reserve exposure.
The country’s ability to quietly monetize mined Bitcoin at large scale without severely disrupting markets is also being closely watched by institutional traders and policymakers.
Analysts said Bhutan’s approach may ultimately become one of the first major examples of a sovereign state successfully integrating Bitcoin mining, treasury management, and infrastructure financing into a coordinated national economic strategy.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
