Bhutan Is Selling Bitcoin: Inside the Sovereign Liquidation of 13,000 Mined BTC

The Broader Liquidation Pattern

Bhutan began methodically selling its Bitcoin in October 2024, using a recurring pattern of transfers to centralized exchanges (primarily Binance) and OTC counterparties such as Singapore-based QCP Capital . Key tranches include:

By late April 2026, Bhutan had sold roughly $198 million worth of Bitcoin in 2026 alone . By early May 2026, reserves had dropped approximately 75% from peak .

How Bhutan Built Its 13,000 BTC Reserve

Bhutan began state-backed Bitcoin mining around 2019 through Druk Holding & Investments, using the country's abundant surplus hydroelectric energy .

• Peak holdings: Approximately 13,000 BTC (roughly 13,295 BTC) reached in late October 2024, valued at roughly $1.2–1.4 billion at then-prevailing prices .
• Acquisition method: Virtually all coins were mined domestically, not purchased on the open market. Bhutan's low-cost hydropower gave it one of the lowest mining costs in the world — described by some analysts as "mining coins for free" .
• Sovereign vehicle: Druk Holding & Investments (DHI), the state investment arm, managed all mining operations and treasury management .
• Regulatory framework: Bhutan's central bank (Royal Monetary Authority) introduced a Regulatory Sandbox Framework for Cryptocurrency Mining in January 2019 .
• Mining status: On-chain data shows no new mining inflows in over a year as of April 2026, suggesting mining operations have been paused or repurposed .

At peak, Bhutan was one of the largest known sovereign holders of Bitcoin, alongside the U.S., China, Ukraine, and El Salvador.

Market Conditions During the Sell-Off

June 2026 transfer ($34.5M to Binance):

• Bitcoin was trading around $58,000–$61,000 in the last week of June and first days of July 2026 .
• This was far below Bitcoin's all-time highs above $120,000 seen in mid-2025 and below the $112,000 level from earlier in 2026 .
• The broader crypto market was characterized by "Extreme Fear" — the Fear & Greed Index registered 16 (Extreme Fear) .
• Bitcoin was down roughly 13.7% year-to-date through mid-2026 .

Context of earlier sales:

• Bhutan's sales in mid-2025 (e.g., $74M in July 2025) occurred near Bitcoin's all-time highs above $120,000, suggesting opportunistic profit-taking .
• By March–April 2026, the market had turned bearish, and Bhutan continued selling during a downturn, which analysts noted added downward pressure .