Bhutan offloads $22M in Bitcoin reserves as market tests $71,000 support

The Himalayan kingdom of Bhutan is once again making waves in the digital asset market by moving a significant portion of its sovereign Bitcoin holdings to centralized entities.

According to data from the blockchain analytics platform Arkham Intelligence, the Royal Government of Bhutan has liquidated approximately 284.8 BTC, valued at roughly $22.3 million. The transactions were reportedly executed in two distinct tranches: a transfer of 100.8 BTC on January 30, followed by a larger movement of 184 BTC on February 4. The recipient of these funds has been identified as the prominent market maker QCP Capital.

Analysts at Arkham noted that this activity aligns with Bhutan’s established pattern of “tactical selling,” where the government offloads assets in increments of approximately $50 million during specific market windows. Since 2019, the kingdom has leveraged its abundant hydroelectric power to fuel a massive mining operation, generating cumulative revenues exceeding $765 million.

On the data side, Arkham Intelligence indicates that Bhutan’s remaining balance now sits at approximately 5,700 BTC, valued at over $403 million. While this is a significant reduction from the peak of 13,000 BTC held previously, the country remains the seventh-largest sovereign Bitcoin holder globally, trailing behind major nations like the United States and China.

The timing of this latest sale coincides with a challenging period for the broader crypto market. Bitcoin is currently trading around $71,000, nearly 44% below its all-time high of $126,080. For sovereign miners like Bhutan, the economic landscape has shifted materially following the 2024 halving, which effectively doubled production costs while halving the block rewards.

Recent market notes suggest that while Bhutan is taking profits, other institutional players are also recalibrating. The shift from aggressive accumulation to strategic distribution by state actors often signals a period of consolidation.

For traders, the primary concern is whether this government-level selling will create a persistent supply overhang. If Bhutan continues to liquidate its stash into the current weakness, it could suggest that sovereign holders are bracing for a longer period of volatility rather than a swift recovery to previous highs.