Bhutan Unloads 70% of its Bitcoin Holdings as Mining Becomes Increasingly Unprofitable

The small Himalayan kingdom of Bhutan has quietly sold nearly 70% of its Bitcoin holdings over the past 18 months, according to data from Arkham Intelligence. The country's remaining 3,954 BTC is now valued at approximately $280.6 million. In a recent transfer, Bhutan moved 319.7 BTC (valued around $22.7 million) to exchange addresses linked to Galaxy Digital and OKX.

This move contrasts with the broader market, where other institutions and sovereign actors are accumulating Bitcoin. The country's mining operation, powered by cheap hydropower, has slowed or even stopped, despite being one of the most interesting sovereign Bitcoin miners in the past. Data shows no significant new flows have been added to the operation for over a year.

The likely reason behind Bhutan's decision is economic: with Bitcoin trading at around $71,000 and mining becoming increasingly unprofitable due to reduced block rewards and record-high difficulty levels, selling electricity to India may now be more attractive than mining BTC.