Bhutan is discreetly winding down a unique bitcoin venture initiated by its government. The Royal Government of Bhutan recently transferred approximately 319.7 BTC, valued at $22.68 million, to two addresses as per Arkham Intelligence data. Out of this, around 250 BTC was directed to an account previously linked with Galaxy Digital and OKX for sales, while another 69.7 BTC went to a newly created, unmarked address.
This transaction is part of ongoing sales that have been happening over the past months. Initially, Bhutan held about 13,000 BTC in October 2024, amassed through a hydropower-backed mining operation managed by Druk Holding and Investments, its sovereign wealth fund. This initiative served as a proof-of-concept for sovereign bitcoin mining, utilizing a small, landlocked nation with abundant renewable energy resources.
In the last 18 months, Bhutan’s holdings have diminished to 3,954 BTC, now valued at approximately $280.6 million—a 70% decrease. Arkham data indicates that $215.7 million worth of bitcoin has been sold from Bhutan’s holding addresses this year alone, with $162.6 million directed to anonymous wallets.
While other major holders are increasing their stakes, Bhutan is the only notable sovereign-level entity currently reducing its holdings. Questions also arise about whether Bhutan’s mining operations have ceased. Arkham data reveals that the last significant bitcoin inflow of over $100,000 occurred more than a year ago, suggesting no recent additions to its reserves.
Druk Holdings has not responded to multiple inquiries from CoinDesk regarding these transactions or the status of their mining activities. However, economic factors might explain this shift. The viability of Bhutan’s mining operations was higher when difficulty levels were lower and bitcoin prices exceeded $90,000. At present, with bitcoin near $71,000 and network difficulty at record highs post-halving, small-scale sovereign mining becomes less profitable.
The same hydropower resources that facilitated Bhutan’s pioneering effort might now yield more revenue by selling electricity to India than through bitcoin mining, especially as mining hardware depreciates with each difficulty adjustment. This decision underscores the disparity between bitcoin’s appeal and the practical challenges of sustaining a position during market downturns.
Bhutan’s remaining 3,954 BTC is now less than what Strategy acquires in a typical week, highlighting how swiftly other entities are amassing holdings compared to Bhutan’s dwindling reserves. The nation that once generated 13,000 bitcoins from its own resources is observing a Virginia-based company accumulating more bitcoin in five days than what remains with Bhutan.