$22.3M to QCP amid mining costs

Amid renewed market volatility, Bhutan bitcoin holdings are back in motion as the kingdom moves funds to a major liquidity provider.

Bhutan moves $22.3 million in Bitcoin to QCP Capital

The Kingdom of Bhutan has transferred a total of $22.3 million in Bitcoin (BTC) to crypto market maker QCP Capital over the past week, according to on-chain data from Arkham. The activity marks the first visible movement from the country’s large BTC treasury in roughly three months.

Arkham flagged a transfer of 184 BTC, valued at $14 million, executed on Wednesday. Moreover, this transaction followed an earlier move last Friday in which 100.8 BTC, worth $8.3 million, was also sent to QCP Capital. Together, the two transfers highlight a renewed phase of treasury management by the South Asian monarchy.

The fresh outflows coincided with renewed weakness in the wider crypto market. Bitcoin slipped below $71,000 during the period, extending a sharp short-term decline. Over 24 hours, BTC fell by more than 7%, adding pressure to miners and large institutional holders alike.

Nation-state Bitcoin holdings slide after large reductions

Bhutan’s on-chain reserves have dropped sharply from their peak, reshaping its standing among sovereign holders. In October 2024, the country controlled a high of 13,295 BTC; that figure has since fallen to about 5,700 BTC. However, even after substantial sales, the Himalayan kingdom remains an important player in the nation-state BTC landscape.

Data compiled by Bitcoin Treasuries shows Bhutan now ranks seventh by national bitcoin holdings. It trails the US, China, UK, Ukraine, El Salvador and the United Arab Emirates. Previously, Bhutan occupied a higher position on that list before its recent batch of transfers tightened its stack.

Since launching industrial-scale mining operations in 2019, Bhutan has accumulated roughly $765 million worth of BTC. The projects are overseen by state-owned Druk Holding and Investments and rely primarily on domestic hydroelectric generation. That said, the country has also been an active seller, periodically unloading approximately $50 million in Bitcoin at a time.

Hydroelectric mining and the rising cost of BTC production

Bhutan’s hydroelectric bitcoin mining strategy has long been promoted as a way to monetize surplus renewable energy. However, the elevated difficulty and reduced block rewards after the latest protocol adjustment have squeezed profitability, even for low-cost producers. This changing economic backdrop appears to be influencing treasury decisions.

The bitcoin halving impact in 2024 has been particularly significant. The cost to mine a single BTC has roughly doubled since the event, Arkham noted, while rewards for the same level of computational power have been cut by 50%. As a result, operations must run more efficiently or scale back output to remain viable.

In 2023, Bhutan mined about 8,200 BTC, a substantial contribution to its overall holdings. Current production is now well below that level, according to Arkham’s latest estimates. The combination of higher bitcoin mining costs and weaker prices has further tightened margins, prompting closer management of reserves.

Arkham also observed that Bhutan bitcoin activity tends to follow a pattern of structured disposals. The platform reported that the country’s last notable burst of selling took place in mid-to-late September 2025. Moreover, those transactions, like the latest ones, appeared to be executed in consistent batch sizes, underlining a systematic approach to treasury sales.

Transfers to QCP Capital and centralized exchanges

On-chain flows show that recent assets did not all remain with QCP Capital. According to Arkham, some of the BTC sent out by Bhutan ultimately moved to a Binance hot wallet, while other coins were directed to newly created addresses. However, the primary channel remained QCP, which typically provides liquidity services across spot and derivatives markets.

Transferring assets to market makers generally indicates an intention to liquidate or rebalance exposure. In this case, the qcp capital transfer suggests Bhutan is either converting BTC into fiat or other assets, or preparing structured trades to hedge its position. That said, without direct confirmation from counterparties, the precise execution strategy remains uncertain.

CoinDesk contacted QCP Capital via Telegram to obtain further details on the flows but did not receive an immediate response. Similarly, Cointelegraph reached out to Druk Holding and Investments for comment on the transactions and broader strategy. As of publication time, no official statements had been issued clarifying Bhutan’s objectives.

Price slump and macro pressures weigh on Bitcoin

The broader environment for Bitcoin has turned more challenging in recent months. The asset currently trades more than 42% below its all-time high of $126,080, which was set in October last year. During the latest sell-off, BTC slipped beneath $72,000, reinforcing concerns about risk appetite across digital assets.

Market sentiment over the past three months has deteriorated to levels last seen in mid-2022. Several macro and policy factors have contributed to the slump. US government shutdown episodes and uncertainty surrounding trade policy have pressured equities and crypto alike. Moreover, President Donald Trump has continued to threaten new tariffs, amplifying investor unease.

Regulatory uncertainty has added another layer of stress. In Washington, efforts to pass comprehensive crypto market structure legislation have stalled. This deadlock has weighed on institutional demand and slowed the pace of new capital allocations into the sector, even as global liquidity remains historically elevated.

Despite abundant money supply, many investors have rotated toward perceived safe-haven assets. Gold and silver have both seen stronger demand amid fears of prolonged macroeconomic volatility. However, this shift has left speculative assets such as Bitcoin vulnerable to deeper drawdowns and sharper intraday swings.

Policy comments, network strain and security debates

Political messaging has also shaped market narratives. US Treasury Secretary Bessent recently stated that the government will not “bail out” Bitcoin, a remark that sparked debate about the role of public institutions in digital asset markets. While the comment did not outline new policy, it reinforced perceptions that crypto investors remain largely on their own in times of stress.

On the network side, Bitcoin’s hashrate has retreated below 1 zetahash per second as some miners shut down unprofitable rigs following the halving. Moreover, the combination of lower revenue and higher energy costs has forced operators to evaluate capital expenditure plans more cautiously. For countries like Bhutan, where mining underpins strategic reserves, that shift is particularly relevant.

At the same time, renewed discussion about potential quantum computing threats to Bitcoin’s security model has surfaced in industry circles. Experts broadly agree that no imminent break of core cryptography is visible today. That said, the debate underscores the importance of ongoing protocol research and could influence how long-term holders manage large, concentrated positions.

Outlook for Bhutan’s digital asset strategy

The latest wave of transfers, partly routed to a Binance hot wallet and newly created addresses, underlines how actively Bhutan now manages its crypto exposure. In total, the country has accumulated $765 million in BTC since launching operations in 2019, even after selling multiple large batches over recent years.

For a small economy that relies heavily on hydropower exports, the combination of rising mining costs, post-halving revenue compression and price volatility is forcing difficult choices. Moreover, as global regulation and macro conditions remain unsettled, Bhutan bitcoin policy will likely continue to balance long-term accumulation with periodic sales to stabilize fiscal resources.

In summary, Bhutan’s recent $22.3 million BTC outflow to QCP Capital reflects the intersection of mining economics, shifting market conditions and cautious sovereign treasury management, with the country’s remaining 5,700 BTC still positioning it as a significant, if more measured, nation-state holder.