What to know:
- Bhutan transfers 519.7 Bitcoin to new wallets linked to trading firm QCP Capital.
- Total holdings stand at 4,453 Bitcoin worth $315M under Druk fund control.
- Mining profits built reserves, but halving pushed Bhutan to sell $100M Bitcoin.
The Royal Government of Bhutan has moved 519.7 Bitcoin, worth about $36.75 million, into two new addresses. The move was reported by Arkham Intelligence, as of Wednesday, March 25. The new addresses are associated with the crypto trading company QCP Capital.
The transfer is part of Bhutan’s ongoing management of its reserve. However, there is no public information available about the move. Transfers into trading-linked accounts are often related to liquidity management or even selling activity.
After this transaction, Bhutan now holds 4,453 BTC. These Bitcoin holdings are valued at $315.89 million. The reserves are managed by the country’s sovereign wealth fund, Druk Holding and Investments Ltd.
Bhutan Moves 973 BTC in Recent Transactions
Bhutan has made several BTC transactions over the past few days. These transactions suggest a managed reserve rather than passive storage.
Last week, a transfer of 973 BTC was recorded. The total worth of this transaction was $72.3 million. The details of this transaction were recorded by Arkham Intelligence.
Out of this, $1.5 million was transferred to QCP Capital. Another $44.4 million was transferred to unknown wallets. The remaining funds were distributed across additional addresses.
Bhutan created most of its BTC reserves through mining activities. The country used cheap hydroelectric power for mining. This helped minimize mining costs.
The government spent $120 million on mining activities. In 2023, Bhutan mined almost 8,200 BTC. This helped the country earn a profit of $265 million during that period.
The mining environment changed after the BTC halving event in 2024. The mining rewards decreased, and the mining costs increased. This made mining less profitable for many parties, including Bhutan.
Also Read: Bitcoin (BTC) Holds $70K: Positive Signs of a Regime Shift
In response, Bhutan has started selling some of its BTC holdings. The funds are directed towards providing public services as well as financing government expenditure. This includes the payment of civil servant salaries.
Bhutan Records $100M Bitcoin Sales
Bhutan has sold about $100 million in BTC between 2023 and 2024. Of this, about $22.4 million was sold during weaker market conditions. These actions are evidence of the disciplined usage of the funds.
Bhutan is among the top Bitcoin holders, despite the recent price fluctuations. It is the seventh-largest sovereign Bitcoin holder in the world.
At the network level, Bitcoin is experiencing stability. The hash rate stands at 1.045 ZH/s at block 942,134, according to CoinWarz. Over the last month, it has oscillated from 0.8 ZH/s to 1.2 ZH/s.
The long-term trend indicates steady growth in mining power. This supports network security and reliability. Even with market fluctuations, Bitcoin continues to maintain strong infrastructure.
Also Read: Bhutan Transfers 973 Bitcoin Worth $72M Across Multiple Wallets
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