Bhutan has made its second Bitcoin transfer in a week, moving roughly $22 million worth of the cryptocurrency to a market maker as prices remain under pressure and mining economics deteriorate. Blockchain analytics firm Arkham shows the country transferred 184 Bitcoin on Wednesday, following a 100.8 Bitcoin transfer late last week. Both transactions were sent to QCP Capital, a move that typically signals preparation for liquidation.
The transfers mark a continued reduction in Bhutan’s national Bitcoin reserves, which have fallen from a peak of 13,295 BTC in October 2024 to about 5,700 BTC. Since launching its state-backed mining initiative in 2019, powered largely by hydroelectric energy, Bhutan has accumulated approximately $765 million in Bitcoin. However, Arkham data indicates the cost to mine one Bitcoin has nearly doubled since the 2024 halving, significantly reducing mining output compared with 2023 levels.
Mining Economics and Reserve Management
Rising operational costs appear to be reshaping Bhutan’s approach to managing its digital asset reserves. In 2023, the country mined roughly 8,200 BTC, but production has slowed materially as lower prices and greater difficulty compress margins. Arkham noted that Bhutan has historically sold Bitcoin in batches of around $50 million, suggesting the latest transfers fit a recurring treasury management pattern rather than an abrupt policy shift.
As a result of the drawdown, Bhutan has slipped to seventh place among nation-state Bitcoin holders, trailing the United States, China, the United Kingdom, Ukraine, El Salvador, and the United Arab Emirates. The state-owned investment arm Druk Holding and Investments has not publicly commented on the latest transfers, maintaining a low profile around its crypto strategy amid volatile market conditions.
Broader Market and Macro Pressures
The reduction in Bhutan’s holdings comes as Bitcoin trades more than 42% below its October all-time high of $126,080, with prices hovering under $72,000. Market sentiment has weakened to levels last seen in mid-2022, reflecting broader risk aversion across global markets. Investors have increasingly favored traditional safe havens such as gold and silver despite elevated global liquidity.
Macro uncertainty has compounded crypto market stress, with concerns ranging from U.S. government shutdowns and renewed trade tensions to stalled digital asset legislation in Washington. Additional narratives, including quantum computing risks and a recent dip in Bitcoin network hashrate below one zetahash per second, have further weighed on sentiment. Against this backdrop, Bhutan’s latest Bitcoin transfers underscore how even sovereign holders are reassessing exposure as structural and macro pressures converge.
