Bhutan has liquidated Bitcoin worth over $120 million during March, with its latest transaction bringing fresh attention to the country’s crypto strategy. Data from Arkham Intelligence shows that Wednesday, Bhutan’s government, through its investment arm Druk Holding and Investments, sent 519.7 BTC, worth about $36.75 million, to two separate wallets.
One of the receiving wallets was QCP Capital, a Singapore-based digital asset trading firm known for handling large institutional transactions. That has increased market talk that some of the Bitcoin could be prepared for sale. Even so, no official confirmation has been given about the purpose of the transfer.
The latest transfer followed two earlier Bitcoin transfers in March. Arkham Intelligence data showed that Bhutan first sent 175 BTC worth about $11.85 million on 9 March.
Then, on March 17 and 18, the Royal Government of Bhutan sent another 973 BTC worth around $72.3 million through six separate transactions. From that total, Bhutan sent 20.5 BTC to QCP Capital and moved the rest to unidentified wallets.
Bhutan still holds 4,453 BTC despite a sharp 66 percent drop from its peak
Traders are still watching Bhutan closely because the country remains a major Bitcoin holder. Even after the latest transfer, Bhutan still holds 4,453 BTC, valued at about $315.89 million.
However, that is far below the country’s October 2024 peak of around 13,295 BTC, showing a decline of roughly 66.5 percent in its Bitcoin holdings. At peak market prices, that earlier stash was worth more than $1.6 billion.
QCP Capital receives a large part of Bhutan’s Bitcoin holdings
Bhutan started with smaller Bitcoin transfers in January and February, mostly between $5 million and $15 million. In March, the transfers became much larger, rising to between $35 million and $45 million. Bhutan sent a notable share of the funds to QCP Capital, which increased market speculation.
OTC deals let large holders sell Bitcoin without putting heavy pressure on public exchange markets. That helps reduce sudden price swings. Bhutan appears to be following that approach by breaking its sales into smaller and more manageable transfers.
Bhutan builds Bitcoin reserves through hydropower mining
Bhutan has chosen a different route to acquire Bitcoin compared to other governments. Instead of buying BTC from the market, the country has chosen to mine Bitcoins using the excess power generated by its hydropower plants set up between 2019 and 2020.
This strategy has helped Bhutan build a Bitcoin reserve without buying directly from the market. It also turned extra renewable energy into a new source of income and made the country a quiet but important player in crypto mining.
However, the country has not seen any major Bitcoin inflows above $100 million for over a year, which has led to speculation that the Buddhist kingdom might have slowed down some of its mining activities due to the ongoing challenges in the global financial markets.
From the actions taken by the Bhutan government, it seems that the country is taking profits from the increased price of the asset, rebalancing its Bitcoin holdings, and increasing its liquidity while maintaining its long-term position in the asset.