Bhutan Dumps 70% of Bitcoin Stash Amid Record Mining Difficulty

The small Himalayan kingdom of Bhutan has been quietly selling off its Bitcoin holdings at an alarming rate. According to Arkham Intelligence, the country's BTC stash has decreased from approximately 13,000 coins in October 2024 to just 3,954 today, a decline of around 70% over the past 18 months.

The remaining 3,954 BTC is currently valued at around $280.6 million. Just last Thursday, Bhutan transferred 319.7 BTC (valued at ~$22.7 million) to addresses associated with sales via Galaxy Digital and OKX.

This development comes as the country's Bitcoin mining operation, which utilizes low-cost hydroelectric energy, appears to have significantly slowed or even stopped. The data from Arkham shows no significant new flows for over a year, contrasting sharply with the broader market.

Other institutions and sovereign actors are accumulating Bitcoin, but Bhutan is one of the few visible sellers in the space. The reason behind this move is likely economic: with Bitcoin trading around $71,000, record mining difficulty, and a halving of block reward, small-scale sovereign mining has become much less profitable.