The Kingdom of Bhutan, often cited as a pioneer in integrating natural resources with digital technologies, has once again attracted the attention of global markets. This week, the Himalayan nation moved some $22.4 million in Bitcoin from its sovereign wallets, marking a new chapter in the management of its digital assets. Among the most notable transactions was a direct transfer to QCP Capital, a well-known institutional market maker based in Singapore.
These moves come amid a sharp decline in the overall value of Bhutan's crypto portfolio, which has fallen from a peak of $1.4 billion to about $412 million today.
Details of the liquidation and the role of QCP Capital
According to data provided by the blockchain analytics platform Arkham, the recent outflows can be traced to Druk Holding Investments (DHI), the country's sovereign investment arm. The transactions were split into two main tranches: one of 184.03 BTC (valued at $14.09 million) and an earlier one of 100.82 BTC (valued at $8.31 million).
Bhutan is selling Bitcoin. pic.twitter.com/WDuUQmBZsU
- Arkham (@arkham) February 4, 2026
Sending funds to QCP Capital suggests a sophisticated sales strategy. Unlike direct deposits on exchanges, which can trigger sudden price drops due to immediate visibility, the use of a market maker allows 'block trades' to be handled, reducing the impact on the market. Historically, the Bhutan has traded with average liquidations of around USD 50 million; the current, lower pace could indicate a more cautious approach or a physiological reduction in available reserves.
The impact of Halving on mining operations
The love affair between Bhutan and Bitcoin began in 2019, harnessing the country's abundant hydropower to power massive mining operations. DHI is estimated to have generated over $765 million in profits from 2019 to date, against energy costs of around $120 million.
However, the landscape has changed drastically with the halving of 2024. This event, which halved the rewards per mined block, effectively doubled the cost of producing a single Bitcoin. Data indicate that Bhutan accumulated most of its assets before April 2024, drastically reducing production soon after. The loss of energy efficiency and shrinking profit margins likely prompted the government to shift from a phase of hoarding to one of strategic monetisation of reserves.
Portfolio analysis: a 70% decline
Currently, DHI's on-chain assets amount to about $412 million, a contraction of more than 70% from historical highs. The portfolio consists almost exclusively of 5,700 BTC, with negligible holdings in Ethereum and other tokens.
This decline is not only due to sales, but also to the natural fluctuation of the Bitcoin price during 2025 and early 2026. Analysis of historical transfers reveals that Bhutan's main exchange partners were Binance (with $261 million moved, about 68% of total activity) and Celsius Network ($118 million).
Modern asset management
Bhutan remains one of the few states in the world to have actively integrated cryptocurrencies into its national treasury. The DHI's management reflects an approach that combines traditional investments and digital assets with a view to fiscal diversification.
It remains to be seen whether the continued liquidations are a prelude to a definitive exit from the sector, or whether they represent a simple rebalancing of the portfolio to finance domestic projects or meet budgetary needs. In any case, Bhutan continues to be a unique case study for observers and analysts of the 'Sovereign Crypto' sector.
