Bhutan Offloads $22M in Bitcoin as Mining Costs Double After Halving

TLDR

• Bhutan transferred 184 BTC worth $14 million on Wednesday and 100.8 BTC worth $8.3 million last Friday to QCP Capital
• The country’s Bitcoin holdings fell from 13,295 BTC in October 2024 to 5,700 BTC, dropping it to seventh among nation-state holders
• Bhutan has accumulated $765 million in Bitcoin since starting hydroelectric-powered mining operations in 2019
• Mining costs doubled after the 2024 Bitcoin halving, with Bhutan mining far less than the 8,200 BTC it produced in 2023
• Bitcoin has fallen 42.8% from its all-time high of $126,080 to below $72,000

Bhutan has moved $22.3 million worth of Bitcoin to crypto market maker QCP Capital in two separate transfers over the past week. The transfers mark the first wallet activity from the South Asian nation in roughly three months.

Blockchain analytics platform Arkham tracked a 184 BTC transfer worth $14 million on Wednesday. This followed a 100.8 BTC transfer worth $8.3 million last Friday.

The moves came as Bitcoin dropped below $71,000 and broader markets experienced volatility. Bitcoin has fallen more than 7% in 24 hours.

Bhutan’s Bitcoin holdings have declined from a peak of 13,295 BTC in October 2024 to 5,700 BTC. The reduction has pushed the country down to seventh place among nation-state Bitcoin holders.

Bitcoin Treasuries data shows Bhutan now trails the US, China, UK, Ukraine, El Salvador and the United Arab Emirates in national Bitcoin holdings. The country previously held a higher ranking before the recent transfers.

Bhutan began its Bitcoin mining operations in 2019 through state-owned entity Druk Holding and Investments. The mining is powered primarily by hydroelectric energy.

Since starting mining operations, Bhutan has accumulated about $765 million in Bitcoin. The country has periodically sold Bitcoin in batches of around $50 million.

Mining Costs Rise After Halving

The cost to mine one Bitcoin has roughly doubled since the 2024 Bitcoin halving event. This increased cost has affected Bhutan’s mining output.

In 2023, Bhutan mined 8,200 BTC. Current mining production is far below that level, according to Arkham data.

The Bitcoin halving reduces mining rewards by 50%, making operations more expensive. Miners receive fewer Bitcoin for the same amount of energy and computational power.

Arkham noted that Bhutan’s most recent period of heavy selling occurred in mid-to-late September 2025. The platform observed the country typically sells Bitcoin in specific batch sizes.

Transferring assets to market makers like QCP Capital often signals a sale. Market makers help convert assets into liquid markets through trading operations.

Market Conditions Impact Holdings

Bitcoin currently trades over 42% below its all-time high of $126,080 reached last October. The cryptocurrency fell below $72,000 during recent market movements.

Market sentiment over the past three months has sunk to levels last seen in mid-2022. Several factors have contributed to the price decline.

US government shutdowns and trade policy uncertainty have weighed on risk assets. President Donald Trump’s continued tariff threats have created additional market uncertainty.

Crypto market structure legislation in Washington has stalled. This has added to investor concerns about regulatory clarity.

Global liquidity remains near all-time highs, but investors have shifted to safe-haven assets. Gold and silver have seen increased demand amid macroeconomic uncertainty.

US Treasury Secretary Bessent stated the government won’t “bail out” Bitcoin. This comment added to market discussions about government support for crypto assets.

Bitcoin’s network hashrate fell below 1 zetahash per second as miners unplugged unprofitable machines. Concerns about quantum computing risks to Bitcoin’s security model have also emerged in recent discussions.

The latest transfers sent Bitcoin to QCP Capital and a Binance hot wallet, according to Arkham. Some coins were also sent to new addresses.

CoinDesk reached out to QCP Capital via Telegram for comment but did not receive an immediate response. Cointelegraph contacted Druk Holding and Investments but did not receive an immediate response.

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