The rapid depletion of the Bhutanese Bitcoin reserve

Bhutan’s Bitcoin reserves reached a peak of 13,295 BTC in October 2024. The value of that position hit $1.6 billion during the October 2025 market peak. Since then, Druk Holding and Investments (DHI) has reduced the holdings significantly. Current data shows the DHI balance at 4,453 BTC, which means the reserve dropped 65% from its peak. Other data indicates the stack fell from 13,000 to 5,400 BTC, a 58% reduction in coins. A separate reading from June 2026 shows the holdings at only 1,750 BTC, or 13% of the peak amount. This lower balance holds a value of $142 million. The market crash in October 2025 sent Bitcoin prices from $126,080 down to $60,000. This price decline combined with heavy selling hit the kingdom’s treasury hard. The value of the position dropped to $330 million following the market downturn and ongoing liquidations. In a single 24-hour period, DHI moved $72.3 million in Bitcoin from its wallets. This movement included 973 BTC sent in six separate transactions.

Mining Cessation and the Pressure of Energy Competition

The absence of Bitcoin inflows suggests the kingdom stopped its hydropower-driven Bitcoin production. Arkham Intelligence reported no Bitcoin inflows exceeding $100,000 into Bhutan’s wallets for over a year. This decline follows the April 2024 halving event that doubled the cost of producing one Bitcoin. Bhutan used surplus hydropower to mine Bitcoin, which provided a cost basis near zero. This mining revenue helped the government double civil servant salaries and offset tourism losses. However, global competition for energy from AI firms now threatens this advantage. The kingdom used 3nm mining machines and liquid cooling to keep costs low. The country generated more than $765 million in Bitcoin revenue against roughly $120 million in energy expenses before the halving changed the economics. Bhutan’s mining operation turned the landlocked nation into one of the world’s top sovereign holders of Bitcoin. The nation has 782,000 people and built a reserve of 12,000 BTC worth $1.3 billion since 2020. It even outpaced El Salvador in terms of adoption speed. Can the government sustain its economic resilience if the mining revenue disappears?

The Gelephu Mindfulness City Liquidity Gap

The national Bitcoin Development Pledge creates a massive shortfall for Bhutan’s urban projects. Bhutan committed up to 10,000 BTC to fund the Gelephu Mindfulness City (GMC) special administrative region. This project combines sustainability with commercial growth. DHI currently holds 4,453 BTC. The 10,000 BTC pledge, which the government valued at $1 billion, exceeds the current available reserves by 5,547 BTC. This creates a significant risk for the development of the GMC. While El Salvador held 7,649 BTC in June 2026 and continues to buy, Bhutan’s stack continues to shrink. North Korea now holds 13,562 BTC, which is more than Bhutan.

Counterparty Liquidations and Treasury Management

DHI executes liquidations through structured transfers to counterparties like QCP Capital and Binance. The movement of 184 BTC worth $14.09 million in February to the same wallet address used for recent transfers suggests that DHI utilizes a consistent OTC or treasury management counterparty for its Bitcoin liquidations. This strategy avoids sudden market shocks. In 2026 alone, Bhutan moved $215.7 million in Bitcoin. Outflows through May 2026 reached $230 million. DHI also moved 20.5 BTC worth $1.52 million to QCP Capital recently. In February, Bhutan sent 200 BTC worth $15 million to QCP Capital’s merchant deposit address. This February activity included two separate sends to the same firm. Bhutan also sent $1.5 million in USDT to a Binance hot wallet in February. The kingdom also transferred 284 BTC in February, valued at $22 million. Another transfer in March involved 175 BTC worth $11.8 million. The blockchain shows 533 BTC left Bhutan’s wallets for a Binance deposit address before the June 17 reading. You should watch the Binance deposit addresses for signs of further liquidations.