Bhutan Cuts Bitcoin Holdings 70% As Sovereign Strategy S

By Bena Ilyas | Edited By Ammar Raza,April 11, 2026, 6:00 PM

Bhutan has significantly reduced its Bitcoin holdings over the past 18 months, signaling a major shift in its digital asset strategy. Once recognized for its state-backed mining initiative, the country has quietly offloaded a large portion of its reserves, reflecting changing economic conditions and evolving priorities within its sovereign investment approach.

According to the analysis by Arkham Intelligence, Bhutan’s Bitcoin holdings plummeted from approximately 13,000 BTC back in October 2024 to 3,954 BTC currently. Its current holdings’ value is estimated at around $280.6 million. Bhutan underwent 70% liquidation, which could become one of the most drastic in cryptocurrency market history among sovereign entities.

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Bhutan Bitcoin Mining Inflows below $100K Inflow Threshold

On-chain metrics indicate a significant slowdown in Bhutan’s Bitcoin mining activity. No inflows exceeding $100,000 have been recorded in over a year, suggesting that mining operations may have stalled or stopped entirely. This contrasts sharply with the country’s earlier strategy of utilizing hydropower resources to sustain consistent Bitcoin production.

The absence of new inflows suggests Bhutan may now be relying solely on previously accumulated reserves. The shift raises concerns about the long-term viability of its mining model, especially as rising network difficulty and reduced block rewards continue to pressure profitability across smaller-scale mining operations globally.

Accelerated Selling Amid Global Accumulation Trend

In 2026, approximately $215.7 million worth of Bitcoin has been transferred out of Bhutan-linked wallets, with a large portion moving to unidentified addresses. This acceleration in selling comes during a period when many institutional and sovereign entities are increasing their exposure to digital assets rather than reducing holdings.

The difference in strategies pursued by the Strategy firm and Bhutan becomes even more evident in light of the above statistics. Apparently, different entities have different approaches to handling their Bitcoin reserves as part of their portfolio and overall strategy.

Bhutan’s decision may reflect shifting economic priorities, particularly as hydropower exports potentially offer more stable returns than mining. Without official confirmation from Druk Holding and Investments, the full rationale remains unclear, but current data suggests a transition away from large-scale Bitcoin accumulation and production.

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