Bhutan Reduces Sovereign Bitcoin Reserves by 71% in 18 Months

In a major financial move, Bhutan's government has sold 250 BTC for $18 million on April 10, part of a broader strategy that has seen the country withdraw around $180 million from its Bitcoin reserves since January. This activity signals a significant shift in the kingdom's cryptocurrency management.

Initially, Bhutan's sovereign wealth fund, Druk Holding and Investments, peaked at approximately 13,000 BTC in October 2024. However, over the past 18 months, the fund has gradually reduced its holdings by approximately 71%, leaving a current balance of around 3,774 BTC, valued at approximately $274.8 million.

Bhutan's Bitcoin reserves were generated through mining operations supported by the country's abundant hydroelectric power. However, since November 2024, there have been no new inflows into the national crypto fund, raising concerns among experts about the potential cessation of the government’s cryptocurrency mining activities.

The Bitcoin mining sector faced significant challenges in 2025, with rising network difficulty and stagnant prices leading to the exit of around 20% of miners. As a result, analysts suggest that Bhutan's mining operations may have become less viable, with electricity sales to India now offering more lucrative returns than Bitcoin mining. Additionally, the hash rate for Bitcoin has declined by approximately 6% in the first quarter of 2026, further compounding the issues facing the mining economy.