In a significant move, Bhutan has offloaded another $22 million in Bitcoin mined through its state-owned venture, highlighting the country's strategic response to challenging market conditions. This sale comes on the heels of a previous transfer, with Bhutan moving 184 Bitcoin worth $14 million from its national reserve on Wednesday, adding to a prior transfer of 100.8 Bitcoin valued at $8.3 million last Friday. According to blockchain analytics platform Arkham, these transfers were directed to crypto market maker QCP Capital, suggesting a tactic to convert these assets into liquid markets.

Since launching its Bitcoin mining operations in 2019, Bhutan has accumulated approximately $765 million in Bitcoin, primarily utilizing hydroelectric energy. However, the cost of mining has roughly doubled since the 2024 Bitcoin halving. As a result, Bhutan is now mining significantly less Bitcoin than it did in 2023, when it mined 8,200 BTC. Arkham reported that Bhutan's Bitcoin holdings have decreased from a peak of 13,295 BTC in October 2024 to 5,700 BTC today. This decline has seen the country slip to seventh place in Bitcoin holdings among nation-states, trailing behind the US, China, UK, Ukraine, El Salvador, and the United Arab Emirates.

While the precise motivations for this recent sell-off remain unclear, Arkham noted that Bhutan has a pattern of selling Bitcoin in batches around $50 million, with its last substantial sell-off occurring in mid-to-late September 2025. Cointelegraph reached out to Druk Holding and Investments, the entity managing Bhutan’s Bitcoin strategy, but did not receive an immediate response.

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This sell-off coincides with Bitcoin's price decline, with the cryptocurrency now over 42% off its all-time high. Cointelegraph reported that Bitcoin has fallen from its peak of $126,080 last October to below $72,000, with market sentiment reflecting levels seen mid-2022. Factors contributing to Bitcoin’s slump include US government shutdowns, geopolitical tensions, and delays in crypto market legislation.

Investors are increasingly shifting from risk-on assets to safer options like gold and silver amid broader economic uncertainty. Additionally, concerns regarding quantum computing risks to Bitcoin’s security and a decrease in the network's hashrate due to miners shutting down unprofitable operations have also influenced recent market narratives.

As Bhutan continues to adjust its Bitcoin strategy, the implications for its national reserves and the broader crypto market remain significant. The ongoing volatility in Bitcoin's price reflects broader trends in investor behavior and market confidence. With global liquidity at near all-time highs, the shift in investor sentiment suggests that uncertainty will likely continue to impact crypto markets in the foreseeable future.