The Kingdom of Bhutan, a small Himalayan country known for its unique approach to gross national happiness and sustainable development, has intensified its liquidation of Bitcoin holdings in 2026, moving $36.75 million worth of BTC in a single transaction on Wednesday. The country’s cumulative sales of Bitcoin this year now exceed $152 million, marking a notable acceleration in activity compared to previous years.
Steep Decline In BTC Holdings
Bhutan’s government, which built its cryptocurrency reserves through hydroelectricity-powered mining operations, once held approximately 13,000 BTC at their peak in late 2024. Costs for mining in the kingdom were kept minimal due to abundant and renewable energy, enabling nearly full-margin liquidations with each sale.
Continued and systematic outflows have seen these reserves fall to just 4,453 BTC as of March 2026. This constitutes a decline of about 66% from Bhutan’s top holdings, a trend that has gained momentum throughout the first quarter of the year. Bhutan’s liquidations initially took place in occasional tranches ranging from $5 million to $15 million early in 2026. By March, transactions had grown significantly larger, with some single movements ranging up to $45 million.
OTC Deals And The Role Of QCP Capital
QCP Capital, a leading digital asset trading firm based in Singapore, has received around $16.6 million in Bitcoin transfers from Bhutan this year through three separate structured over-the-counter (OTC) deals. QCP, known for providing tailored liquidity solutions to institutions, appears to have a formal agreement to facilitate Bhutan’s ongoing asset disposals.
Bhutan’s strategy of utilizing OTC channels allows it to execute significant transactions without directly disrupting Bitcoin’s price on public exchanges. Breaking up sales into multiple transfers has helped minimize adverse market impact. Bitcoin traded between $65,000 and $75,000 through March 2026, far below its all-time highs near $119,000. Previously, Bhutan’s holdings were valued at nearly $1.88 billion. The remaining portfolio now stands at just $315 million.
Blockchain data indicates that little to no fresh Bitcoin has entered Bhutan’s wallets from mining activities in recent months. Industry analysis points to the likelihood that mining operations have been scaled back or halted, potentially as a response to the recent Bitcoin halving, which further reduced miner rewards.
Funding Crisis For Gelephu Mindfulness City
In December 2025, Bhutan introduced its Bitcoin Development Pledge, dedicating up to 10,000 BTC to the ambitious Gelephu Mindfulness City project, a planned new urban development focused on wellness and holistic living. This commitment, worth an estimated $860 million at the time, aimed to position Bhutan as a leader in blockchain-integrated urban planning.
However, the dramatic drawdown in the nation’s reserves now casts doubt on its ability to honor this pledge. With the treasury holding under 4,500 BTC, Bhutan would need to not only halt liquidations but acquire significant additional coins to meet the original target. The Wednesday transfer of 519.7 BTC to an external wallet signals that the liquidation campaign is ongoing, raising fresh uncertainty over the future of the Gelephu initiative.
