Bhutan’s state investment arm accelerated its Bitcoin sales on March 17 and 18, 2026, sending about 973 BTC through six transactions that raised roughly $72.3 million. The latest disposals extended an already active liquidation cycle and pushed Bhutan’s Bitcoin outflows for 2026 beyond $110 million.
The timing made the move more notable. The sales were executed into a market facing thin liquidity and downward price pressure, even as about $201.62 million in net inflows into spot Bitcoin ETFs helped absorb part of the supply entering the market.
Bhutan Is Turning More of Its Mining Reserve Into Cash
The transactions were routed through established over-the-counter channels, including QCP Capital and a Binance hot wallet, according to the records cited. That structure suggests Bhutan relied on institutional liquidity routes rather than open-market selling to move a large block of mined Bitcoin.
These March transfers were not isolated. When combined with earlier sales in 2026, including roughly $42.5 million in disposals at the start of the year, they show a sustained reduction in the country’s Bitcoin reserve rather than a one-off treasury adjustment.
Bhutan’s position in Bitcoin was built through domestic mining rather than market accumulation. Since 2019, the country has used low-cost hydroelectric power to mine Bitcoin, giving much of its reserve a near-zero acquisition cost and making every sale effectively a monetization of internally generated assets.
That reserve has now been drawn down heavily from its previous peak. Holdings have fallen from about 13,000 BTC in October 2024 to roughly 5,400 BTC, a drop of around 58%, while the estimated value of the portfolio has declined from roughly $1.5 billion to about $374 million.
The Sales Reflect Both Funding Needs and Market Risk
Bhutan has indicated that proceeds from these holdings are tied to national development priorities, especially the Gelephu Mindfulness City project. The government’s willingness to convert mined Bitcoin into funding shows that the reserve is being treated as a strategic financing tool rather than a purely passive sovereign treasury asset.
At the same time, the scale and structure of the sales create broader market and governance questions. Large sovereign disposals routed through OTC channels can limit visible market disruption, but they also increase the need for strong documentation, careful counterparty selection, and clear reporting around execution.
The key issue is no longer whether Bhutan will sell, but how sustained that pace may become. If the country continues converting mined reserves at scale, the result will shape both its own sovereign balance sheet and the way traders, custodians, and compliance teams prepare for intermittent but meaningful supply shocks in Bitcoin markets.
