Bhutan sells over $22M in Bitcoin as prices plunge and mining costs rise

The Royal Government of Bhutan has sold more than $22 million of its self-mined Bitcoin. Notably, the cryptocurrency was mined through its state-run mining project, as BTC’s price continued to decline and mining operations became increasingly complex and challenging.

According to blockchain analytics firm Arkham Intelligence, the Himalayan kingdom transferred 184 BTC (about $14 million) on Wednesday and 100.8 BTC (about $8.3 million) last Friday to addresses associated with institutional market maker QCP Capital, a move that typically precedes selling into liquid markets.

Notably, QCP Capital is a prominent Singapore-based, full-suite cryptocurrency trading company. Sources alleged that, as a crypto market maker, QCP Capital received assets from Bhutan’s reserve, indicating a completed purchase, since market makers play a crucial role in converting those assets into liquid markets. 

Bitcoin’s price decline shocks the crypto market

Bhutan officially began Bitcoin mining operations in 2019, primarily using hydroelectric power. Over the years, this initiative helped Bhutan build one of the more substantial Bitcoin holdings among nation-states. At this moment, Arkham noted that the country had collected around $765 million in Bitcoin.

Nonetheless, the blockchain analytics platform reported a roughly twofold increase in Bitcoin’s marginal production cost since the 2024 Bitcoin halving. As a result, Bhutan is currently producing significantly fewer Bitcoin than in 2023, when 8,200 BTC were mined.

For instance, the total number of Bitcoins in Bhutan’s reserves has sharply declined from an all-time high of 13,295 BTC in October to a low of 5,700 BTC. Moreover, data from Bitcoin Treasuries showed that the country has dropped in ranking, now ranking seventh in terms of Bitcoin holdings, lagging behind nations such as the US, China, the UK, Ukraine, El Salvador, and the United Arab Emirates. 

This situation prompted reporters to reach out to Druk Holding and Investments, the premier commercial and investment arm of the Royal Government of Bhutan, which manages its Bitcoin plan, to clarify the matter. However, they declined to respond to the request.

Still, blockchain analysts and crypto news outlets report that Bhutan’s recent transfers are part of a continuing pattern of sovereign Bitcoin sales, typically executed in tranches of around $50 million rather than a sudden liquidation.

Investors opt to adopt safer, less risky options amid heightened economic instability

Bhutan has seen its Bitcoin holdings decline as the cryptocurrency’s price has fallen sharply from its 2025 peak, dropping by more than 40 % from an all‑time high above $126,000 in October to around $72,000, exerting pressure on asset valuations.

At the same time, the network’s 2024 block reward halving doubled the cost of mining one Bitcoin, making mining operations less profitable and prompting Bhutan to reconsider its accumulation strategy.

Regarding this decline, analysts noted that investor sentiment has deteriorated, matching the pessimistic levels seen in mid-2022 in the last three months.

In attempts to explain the situation, sources claimed that Bitcoin experienced a drop amid US government shutdowns, ongoing tariff threats from US President Donald Trump, and the postponement of crypto market structure laws in Washington.

In the meantime, analysts found that although global liquidity is near an all-time high, investors are pivoting toward safer, less risky options such as gold and silver amid broader economic instability.

Other factors that have contributed to recent debates regarding the fate of  Bitcoin include network hash power slipping from the zetahash milestone and fear that quantum computing could break the encryption securing digital wallets, prompting several operators to cease using economically unviable mining equipment.

On related developments, Crypto miner Canaan announced a three-year high in fourth quarter revenue of $196.3 million, up 121% from the same period last year. Sales of high-performance hardware and better mining performance contributed to growth. Yet, despite the record figures, Canaan’s shares fell 6.9% on Tuesday on Nasdaq, suggesting investors have been skittish.

Most of Canaan’s fourth quarter revenue came from its Bitcoin mining operations and sales of mining tools. And the company’s revenue from Bitcoin mining rose 98.5% Y/Y to $30.4 million. As a result, Canaan expanded its Bitcoin position to 1,750 BTC, valued at nearly $120 million. Its Ether holdings also reached 3,950 ETH, valued at $7.9 million. 

The company’s hardware division also accounted for a large part of its all-time high revenue. Canaan delivered 14.6 exahashes per second (EH/s) of computing power in the quarter, a new record. The company said a “milestone order” from a US-based institutional miner led to a 60% increase in computing power sales year to date. 

On the mining end, Canaan added to its installed hashrate, bringing it to 9.91 EH/s, of which 7.65 EH/s were active for the quarter. This is the growth despite the total Bitcoin network hashrate falling from a record 1,150 EH/s in mid-October to 980 EH/s. 

Many miners are either shutting down unprofitable machines or shifting their operations into AI and high-performance computing.