Bhutan liquidates 70 percent of sovereign Bitcoin holdings amid suspected halt in mining operations

Bhutan has reduced its Bitcoin holdings by 70%, dropping from 13,000 to under 4,000 BTC. Analysts suspect the country has halted its state-run mining operations.

By: AXL Media

Published: Apr 11, 2026, 8:13 AM EDT

Source: Information for this report was sourced from Bloomingbit.

A Sharp Contraction in National Digital Reserves

The Kingdom of Bhutan has executed a substantial liquidation of its sovereign Bitcoin holdings, divesting approximately 70 percent of its stockpile over the previous year and a half. According to data reported by CoinDesk, the nation's digital treasury has plummeted from an estimated 13,000 Bitcoin in October 2023 to its current level of 3,954. This drawdown reflects a pivot in fiscal strategy for the Himalayan nation, which had previously gained international attention for its state-led approach to cryptocurrency accumulation. The remaining assets are currently valued at approximately 280.6 million dollars, a marked decrease from the peak holdings maintained during the prior 18 month period.

Liquidation Velocity and Exchange Activity

The pace of Bhutan's asset reduction has accelerated significantly in the current calendar year, with approximately 215.7 million dollars worth of Bitcoin exiting government controlled wallets in 2026 alone. Recent blockchain telemetry on July 10 revealed a transfer of 250 Bitcoin to addresses associated with the crypto exchange OKX and the digital asset firm Galaxy Digital. An additional 69.7 Bitcoin was moved to a newly created wallet with no specified destination, signaling continued movement within the state's remaining portfolio. These transactions suggest a systematic effort to move assets into liquidity providers, likely for the purpose of conversion into traditional fiat currency or other state expenditures.

Suspicion Surrounding Hydropower Mining Projects

The significant sell off has prompted industry observers to question the operational status of Bhutan’s ambitious hydropower based mining infrastructure. For more than a year, state wallets have failed to record any mining reward deposits exceeding 100,000 dollars, a stark departure from previous activity levels. Industry participants now view this lack of incoming rewards as a definitive sign that the government has halted its mining operations, which utilized the country's abundant renewable energy resources. The shift from a production phase to an asset liquidation phase suggests that the economic or strategic rationale for state level mining may have reached a point of diminishing returns.