In the misty Himalayas, far from Wall Street and Silicon Valley, Bhutan has been executing one of the most unusual sovereign crypto strategies in the world—mining Bitcoin with hydropower, stockpiling it for years, and now steadily selling portions as prices wobble.
Over the past three weeks alone, the kingdom has offloaded roughly $29 million worth of Bitcoin, extending a calculated selling streak that has quietly reshaped its once-massive digital reserve.
A Slow, Strategic Exit—Not a Panic Sale
According to blockchain analytics from Arkham Intelligence, Bhutan sold another $6.7 million in Bitcoin on February 12, marking the third consecutive week of transactions.
The pattern is deliberate:
Late January: ~100.8 BTC sold (≈ $8.3M)
Early February: ~184 BTC sold (≈ $14M)
Mid-February: Another tranche worth ~$6.7M
Some transfers were linked to addresses associated with institutional market maker QCP Capital, suggesting Bhutan is working through professional liquidity channels rather than dumping coins onto open markets.
Since September 2025, cumulative identified sales are nearing $129 million, though analysts believe the real figure could be higher.
From $1.4 Billion Peak to a Leaner—but Still Massive—Holding
Despite the selling, Bhutan remains a significant sovereign Bitcoin holder.
The country still controls roughly 5,700 BTC, valued around $372 million at current prices. That’s down sharply from its October 2024 peak of 13,295 BTC, when its holdings were worth more than $1.4 billion.
In total, Bhutan has reduced its stash by an estimated 7,595 BTC—more than half its original reserves.
Yet unlike many nations experimenting with crypto, Bhutan didn’t buy its Bitcoin.
It mined it.
The World’s First “Hydropower-to-Bitcoin” Economy
Bhutan’s crypto reserves were built through a state-led initiative launched in 2019 by Druk Holding and Investments (DHI), the country’s sovereign investment arm.
Instead of spending foreign currency, Bhutan turned one of its most abundant natural resources—surplus hydroelectric energy—into a digital export.
During seasons when rivers generate more electricity than the country can consume, that power is redirected into energy-intensive mining operations, effectively converting water into Bitcoin.
Over time, Bhutan mined an estimated $765 million worth of BTC, transforming unused energy into a strategic reserve without straining national finances.
A Green Mining Powerhouse With Global Ambitions
The initiative positioned Bhutan as one of the world’s few environmentally conscious mining hubs.
A partnership with Bitdeer Technologies aimed to scale operations to as much as 600 megawatts of capacity, potentially elevating the kingdom into the ranks of top global miners.
Facilities are integrated into Bhutan’s national grid, keeping environmental impact low while maintaining production costs far below many fossil-fuel-powered competitors.
This approach has allowed the country to diversify beyond tourism and agriculture while staying aligned with its sustainability ethos.
Why Bhutan Is Selling Now
The recent sales come against a backdrop of falling crypto prices and tighter mining economics following the 2024 Bitcoin halving, which cut block rewards in half.
Lower rewards mean:
Higher effective production costs
Reduced mining profitability
Greater incentive to liquidate portions of reserves
Rather than abandoning its strategy, Bhutan appears to be rebalancing—selling in smaller weekly increments to manage liquidity while minimizing market disruption.
A Different Playbook Than Other Bitcoin Nations
Bhutan’s model contrasts sharply with countries like El Salvador, which accumulated Bitcoin through direct market purchases.
Bhutan, by contrast:
Generated its holdings domestically through mining
Avoided drawing down foreign exchange reserves
Used periodic sales to fund development projects
Some of those proceeds are being funneled into ambitious national initiatives such as Gelephu Mindfulness City, an economic hub envisioned to blend sustainability, technology, and investment.
Officials have even pledged portions of mined Bitcoin to support long-term infrastructure and growth.
A Case Study in Sovereign Crypto Management
Bhutan’s experiment shows that governments can approach digital assets not just as speculative bets, but as tools of industrial policy—linking renewable energy, sovereign wealth, and emerging technology.
Even after months of sales, the kingdom remains deeply invested in Bitcoin’s future. Annual earnings from past liquidations have exceeded $200 million, underscoring crypto’s role in reshaping its small but evolving economy.
As global markets debate regulation, adoption, and volatility, Bhutan’s quiet Himalayan strategy may offer a unique blueprint:
mine sustainably, hold patiently, sell strategically.