Nikolas Sargeant
The Royal Government of Bhutan has transferred over $22 million in Bitcoin from sovereign wallets during the past week, drawing attention from the cryptocurrency community as blockchain analysts examine whether the movements represent sales or internal reallocation of the Himalayan kingdom's digital asset holdings.
One transaction five days ago was sent directly to addresses linked to market maker QCP Capital, according to Arkham Intelligence data. The movements align with Bhutan's pattern of periodic Bitcoin sales since beginning mining operations in 2019, with blockchain analytics firm Arkham noting the country typically liquidates positions in approximately $50 million increments.
"From our observations, Bhutan periodically sells BTC in clips of around $50M, with a particularly heavy period of selling around mid-late September 2025," Arkham stated, suggesting the recent transfers fit established trading patterns rather than representing a strategic shift in the government's cryptocurrency holdings approach.
The Himalayan kingdom's cryptocurrency portfolio has declined more than 70% from its $1.4 billion peak to $412 million, though the decrease primarily reflects broader market depreciation rather than aggressive selling. Bhutan remains the seventh-largest government Bitcoin holder according to Bitcoin Treasuries data, maintaining significant sovereign exposure to digital assets.
Bhutan has mined Bitcoin since 2019 and accumulated more than $765 million in Bitcoin profits from its operations. "They mined most of their BTC before the halving in 2024, and tapered heavily after that," the Arkham report noted. "This is because the cost to mine a single Bitcoin roughly doubled, which made mining less efficient."
The nation mined approximately 8,200 BTC during 2023 alone, representing its heaviest mining year. Production volumes were substantially lower in surrounding years, with roughly 1,800 BTC mined in 2022 and 300 BTC in 2024. The dramatic production decline following the April 2024 halving event reflects economic realities as block rewards decreased and mining profitability compressed.
The recent Bitcoin transfers from government wallets occurred as Bitcoin declined toward $70,000, falling 7.36% over 24 hours and outpacing the broader cryptocurrency market's 6.39% decline. The timing prompted speculation about whether Bhutan was responding to market conditions with defensive sales or simply executing routine treasury management operations.
Despite substantial transfers, blockchain data analysts note the movements are more likely internal reallocations or custodial arrangements rather than market liquidations. The country's overall wallet balances remain largely unchanged, suggesting funds are being reorganized across addresses rather than sold to exchanges for conversion to fiat currency.
Bhutan has executed similar large-scale wallet movements in the past without triggering market crashes or indicating changes to its long-term Bitcoin accumulation strategy. The government's sophisticated approach to cryptocurrency mining and holdings suggests movements are deliberate treasury management rather than panic selling during market downturns.
Bhutan's cryptocurrency operations represent an unusual sovereign adoption model, with the government directly mining Bitcoin using the country's abundant hydroelectric power resources. The strategy has enabled the small Himalayan nation to accumulate significant digital asset holdings without purchasing Bitcoin on open markets.
