Key Highlights
- The Royal Government of Bhutan has sold 100 BTC to a merchant deposit address.
- The nation has been selling Bitcoin every week since the past three weeks, with this latest sale marking a huge drop from its October 2024 holdings.
- The move seems to be a sovereign strategy to prioritize national economic needs, rather than fear based selling.
- Despite the recent drawdown, Bhutan remains the seventh-largest nation-state BTC holder.
The Royal Government of Bhutan continues to actively manage its Bitcoin (BTC) treasury. In its latest move, the government transferred 100 BTC, worth around $6.7 million, to a merchant deposit address, marking the third consecutive week of Bitcoin sales.
As per data from Arkham Intelligence, the BTC was deposited to a merchant deposit address yesterday and currently holds 5,600 BTC worth almost $372 million in identified wallets. This represents a significant drawdown from its 13,295 BTC holdings in October 2024.
The move follows last week’s transaction, during which the government transferred roughly $22.4 million worth of Bitcoin to crypto exchanges.
Bhutan’s unique strategy
Unlike nations that acquire Bitcoin through seizures, such as the United States or the UK, Bhutan earns its Bitcoin. Bhutan has been mining Bitcoin since 2019, with an estimated profit reaching $765 million. Due to its low hydroelectric power costs, its costs were kept low at $120 million. The Himalayan country mined the most in 2023, with a production of approximately 8,200 BTC.
Powered by hydroelectricity, Bhutan’s Bitdeer partnership aimed for 600MW mining capacity, but output slowed after the April 2024 halving doubled costs, prompting a $100 million sale in September 2025 to fund national priorities.
Currently, Bitcoin is trading at $66,452.37, down 0.87% in the last 24 hours, as per CoinMarketCap data.
Why is Bhutan selling BTC?
The recent sales do not appear to signal that Bhutan is dumping Bitcoin in panic or abandoning crypto entirely. Instead it reflects that it is following a planned, gradual strategy of periodic sales to manage its sovereign holdings and convert mined BTC into usable funds.
The 2024 halving significantly reduced mining efficiency, making new accumulation less attractive. Rather than aggressively expanding holdings, Bhutan is gradually monetizing a portion of its reserves. Moreover, Bhutan treats Bitcoin as a strategic financial resource, not solely as a long-term store of value.
Electricity costs, primarily paid to Bhutan Power Corporation, account for nearly 95% of production expenses. At the same time, public spending has increased, including a 50% salary hike for civil servants, as well as expanded infrastructure and economic development initiatives.
Between 2023 and 2024, Bhutan reportedly sold around $100 million worth of BTC to help double public sector salaries amid economic pressures such as brain drain and declining tourism.
The sale can therefore be viewed as a routine treasury management operation as it is happening in controlled batches to avoid flooding the market and causing any negative impact on the price. Despite the sale, Bhutan is still the seventh-largest nation-state BTC holder.
In short, Bhutan isn’t selling off out of fear, but strategically monetizing a portion of its mined BTC reserves to fund national priorities amid tighter mining conditions and a struggling crypto market. The move also highlights how sovereign digital asset strategies can balance long-term accumulation with immediate economic needs.
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