Bhutan Liquidates $200M in Bitcoin as Mining Rewards Shrink

Bhutan's DHI fund has sold over $200 million in Bitcoin in 2026, shifting from accumulation to liquidity management for national infrastructure projects.

The latest transaction was executed by the sovereign wealth fund Druk Holding and Investments (DHI), which manages the Himalayan nation’s crypto assets. While such movements often spark fears of a mass sell-off, analysts view the operation as part of a long-term liquidity management program rather than an attempt to time the market.

According to blockchain data, Bhutan began the year with approximately 13,000 BTC in its state reserves. Following a series of transfers and sales over recent months, these holdings have decreased significantly. Estimates for the remaining reserves now range between 2,400 and 4,400 BTC, depending on the tracking methodology used.

The total value of tokens sold throughout the year exceeds $200 million. This activity makes Bhutan one of the most proactive nations regarding the management of cryptocurrency reserves in 2026.

From Accumulation to Monetization

Unlike most governments that acquire Bitcoin through seizures or legal proceedings, Bhutan built its reserve through dedicated mining operations.

The country utilizes cheap, renewable hydropower to run large-scale mining centers, serving as a unique example of state involvement in the crypto industry. For several years, the government actively accumulated BTC through production instead of purchasing the asset on the open market.

This strategy has shifted in recent months. Market observers note that the sovereign fund is transitioning from an accumulation phase to a monetization phase, utilizing a portion of its reserves to finance economic and infrastructure projects.

Instead of offloading large quantities at once, DHI typically executes transfers in smaller tranches. This approach minimizes market impact and limits the risk of triggering sharp Bitcoin price volatility.

Mining Sector Faces Post-Halving Pressure

The sales coincide with an increasingly challenging environment for the global mining industry.

Following the 2024 BTC halving, mining rewards were cut in half, heightening pressure on miners worldwide. Simultaneously, the rising network difficulty has further squeezed profitability across the sector.

Bhutan previously held ambitious plans to expand its mining operations, including a partnership with Bitdeer Technologies to build facilities with a capacity of up to 600 megawatts. However, recent data suggests a slowdown in expansion compared to those initial projections.

Some analysts believe the current sales may be directly linked to the need to fund existing infrastructure and cover the maintenance costs of ongoing mining operations.

For the crypto market, Bhutan’s actions offer a compelling case study on how nations can utilize digital assets as a strategic reserve. Rather than viewing Bitcoin solely as an investment, the country is transforming it into a tool for national liquidity management and the funding of long-term economic initiatives.

While many governments are still debating the role of cryptocurrencies within the financial system, Bhutan is already demonstrating how digital reserves can serve as a tangible source of capital in a changing economic climate.