Bhutan Sold Almost $1 Billion in Bitcoin in the Past Year

Key Insights:

• The Bhutan government addressed the move of $34.5 million in BTC to Binance as a sign of another planned sale.
• The country has sold over 10,000 BTC in the past year, netting almost $1 billion.
• Bhutan appears to have stopped mining Bitcoin, likely due to the declining profit margins for miners.

Bhutan has moved another 533.2 Bitcoin (BTC) worth approximately $34.5 million to Binance, extending a year-long trend of sovereign Bitcoin sales.

Blockchain analyst Ember_CN flagged the transfer, noting that similar transactions in the past preceded sales through exchanges. The latest move comes as Bhutan’s Bitcoin reserves continue to shrink following a series of large disposals over the last 12 months.

According to Arkham Intelligence data, Bhutan has sold 10,451 BTC since June 2025, generating about $979 million in proceeds.

At current estimates, the country sold its Bitcoin at an average price of roughly $93,700 per coin. Most of those sales occurred while BTC traded substantially higher than current levels.

Even after Bitcoin fell below $70,000, Bhutan continued reducing its position. Since May alone, the country has transferred or sold about 1,271 BTC.

Arkham data shows Bhutan now holds approximately 1,750 BTC, valued at around $113 million based on current market prices.

Bhutan May Have Exited Bitcoin Mining at the Perfect Time

The BTC sold by Bhutan comes from hydropower-powered Bitcoin mining operations. However, there are also signs that the country has stopped its mining operations.

While it held around 13,000 BTC in October 2024, its Bitcoin holdings have steadily declined since then, with no onchain evidence of an increase. According to Arkham Intelligence, the last time Bhutan saw close to $100,000 in Bitcoin inflow was in November 2024.

According to experts, its exit from the Bitcoin mining business could have been due to operations becoming less profitable. With reduced block rewards due to the halving and soaring mining difficulty, profit margins might have forced Bhutan out of business.

Still, its exit from Bitcoin mining and decision to offload most of its Bitcoin holdings seems prescient in hindsight. Bitcoin miners are now struggling due to rising mining costs and a decline in BTC value.

JPMorgan analysts wrote that Bitcoin has traded below its production costs for five consecutive months. The average cost of production is now $78,000 while BTC trades at $63,000.

Unsurprisingly, the JPMorgan report estimated that   20% of Bitcoin miners are now unprofitable. This is forcing many miners to sell BTC to fund their operations, with over 32,000 BTC sold by miners in Q1.

Bitcoin Struggles Continue Amid Bearish Performance

Meanwhile, the sell-off by the Bhutan government over the past year highlights how institutional and sovereign holders dumped Bitcoin and took profit.

Whale selling pressure has been a major contributor to Bitcoin’s decline over the past couple of months. This, coupled with a contraction in demand, has kept BTC’s price in decline while volatility remains elevated.

Over the past 30 days, Bitcoin has traded as high as $78,000 and as low as $60,000. The flagship cryptocurrency is down 18% over the past month, trading 28% below its value at the start of 2026. Its most recent decline follows the report of a potential rate hike in 2026.

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