The tiny South Asian country of Bhutan has moved around 175 BTC ($12.3 million) from its known wallet address, based on a report from Arkham Intelligence. The remote Himalayan country once owned as much as 13,000 BTC ($920 million), but consistent selling sprees have reduced its crypto reserve to less than 5400 BTC ($382 million).
Arkham tweeted:
Based on the on-chain intelligence report, the country has moved $42.5 million worth of BTC and USDT from its official address in the first two months or so of 2026 alone. Futher data from Arkham shows no signs of distress selling, with transfers aligning with strategic liquidity management as BTC crossed $68k earlier today.
While Arkham reports that these outflows are part of the country’s strategy to engage in periodic selling to help raise funds, overall reserves are taking a hit and could be just a fraction of their peak in months, if not years.
Where is Bhutan Getting its Bitcoin?
Bhutan derives much of its substantial BTC reserves from state-sponsored mining operations. It is widely seen as among the world’s most recognizable mining destinations, benefiting from cheap hydroelectric energy and a cold climate that is beneficial for the energy-intensive nature of these operations.
The interesting foray into crypto began during Covid-19 lockdowns when tourism revenue dried up, and the government decided to look at other avenues for generating valuable foreign exchange. Bitcoin mining was eventually decided by Bhutanese officials as a viable sector, and massive numbers of mining rigs were imported and set up in the country in the next couple of years, making the country a major player in the crypto mining business.
Crypto reserves eventually began to pile up for the country, reaching as high as 13,000 BTC at one point. However, the country has been in a consistent selling phase since October 2024 and has sold 58% of its peak stash ever since. Major selling activity was witnessed in September 2025, probably when authorities decided to take profits while they could.
Bhutan Committed to Digital Currency Revolution
Despite recent BTC selling activity, Bhutan remains deeply committed to the crypto industry and has unveiled Gelephu Mindfulness City, a special economic zone to ease access and practicality of digital assets in the country.
Bhutan also unveiled a blockchain-backed digital nomad visa with a requirement of a gold-backed stablecoin deposit. The country also allows payment in over 100 popular cryptocurrencies for travel-related expenses.
