The Himalayan kingdom of Bhutan has long captured the crypto world’s attention thanks to its state-owned Bitcoin reserves, quietly amassed over the years through nearly cost-free hydroelectric mining. Managed by the nation’s sole wealth fund, Druk Holding and Investments, these reserves have followed a unique trajectory. Recent reports, however, reveal that Bhutan has started to gradually scale back its Bitcoin holdings in a significant departure from previous accumulation strategies.
Bhutan’s Declining Bitcoin Reserves
By the end of 2024, Bhutan’s Bitcoin stash peaked at 13,000 BTC, buoyed by the digital asset’s soaring market prices near $119,000 per coin. This stockpile placed the country’s Bitcoin reserves at an estimated $1.5 billion. Fast forward to the present, and that inventory has shrunk to just 5,400 BTC, now valued around $374 million. The reduction, driven by a combination of falling crypto prices and the sale of 7,600 BTC, has slashed Bhutan’s Bitcoin hoard by approximately $1.1 billion.
So far in 2026, the monarchy’s Bitcoin sales have totaled $42.5 million. February was particularly noteworthy, with transfers amounting to roughly $30.7 million spread across transactions ranging from $5 to $10 million in size. On March 9, an additional 175 BTC—worth $11.85 million—was sent to selected recipients, marking another prominent shift in Bhutan’s portfolio.
Strategic OTC Sales and Zero-Cost Mining
Unlike traditional reserve sales that funnel assets through public exchanges, Bhutan has opted for institutional over-the-counter (OTC) transactions, channeling most trades through entities associated with QCP Capital and Binance. This discrete approach minimizes spot-market fluctuations and assures predetermined liquidity by bypassing the direct impact of market volatility.
What truly distinguishes Bhutan’s strategy from those of other sovereigns and institutions is the virtual absence of mining costs. Fueled mostly by surplus hydroelectric power, the country’s Bitcoin production required no additional energy input, ensuring that nearly every coin sold delivers pure profit to Druk Holding and Investments. Without the pressure to maintain long-term reserves, Bhutan could sell at advantageous price points whenever it saw fit, maximizing returns regardless of prevailing market sentiment.
The Bitcoin sales managed by Druk Holding and Investments were conducted on a near-zero cost basis, with each coin sold representing almost entirely net profit, the fund has emphasized.
This bold experiment has demonstrated the viability of state-backed hydroelectric mining as a direct and effective revenue model. Rather than waiting for Bitcoin to reach new all-time highs, Bhutan capitalized on its holdings and generated considerable income through calculated and timely sales.
Funding Gelephu and the Evolving Reserve Picture
In late 2025, Bhutan pledged up to 10,000 BTC to finance the “Gelephu Mindfulness City”—a high-profile special economic zone intended as a showcase for using digital assets as national reserves. With only 5,400 BTC remaining, the current reserves fall short of that earlier commitment.
This discrepancy hints at either a shift in financing strategy for the flagship project or that the target was always meant as a symbolic gesture. It remains likely that Bhutan will continue mining new Bitcoin while selling portions of its haul in parallel. Yet, with available data, it’s unclear exactly which approach officials will settle on going forward.
As one of the first countries with a state-driven Bitcoin mining program, Bhutan is now easing its reserves into the market via institutional OTC channels. The long-term economic impact of this hydro-powered venture—and its potential to support further national infrastructure projects—will become more evident in the near future.
