The Royal Government of Bhutan has transferred close to $37 million in bitcoin from its state holdings, adding to speculation about the small Himalayan kingdom’s cryptocurrency strategy.

The government of Bhutan has shifted a significant chunk of its digital currency holdings, sending nearly $37 million in bitcoin to different accounts, blockchain records show.

Data from Arkham Intelligence reveals the Asian nation transferred 519.7 BTC, totaling approximately $36.75 million, to a pair of wallets. One of these accounts is connected to QCP Capital, a trading company.

After this latest move, Bhutan’s government still possesses 4,453 BTC, currently valued around $315.89 million. The nation’s sovereign wealth fund, Druk Holding and Investments Ltd., oversees these digital assets.

Officials haven’t explained why they made this transfer. However, when governments send cryptocurrency to trading firms or exchange wallets, it typically signals they might sell some holdings.

Recent transactions total over $120 million

This isn’t Bhutan’s first recent transaction.

The fund moved $72 million worth last week and roughly $12 million earlier this month. Bhutan built its bitcoin stockpile by mining operations that run on the country’s plentiful hydroelectric power. The nation held over 13,000 BTC at its highest point in October 2024.

Questions have emerged about whether mining continues, since the last deposit exceeding $100,000 happened more than twelve months ago.

Bitcoin currently trades at $71,094, representing a 1.3% daily increase but remaining 40% below its October 2025 peak of $124,900.

Early government adopter leveraged hydropower surplus

Bhutan entered the cryptocurrency mining business back in 2018, making it an early adopter among national governments. Ujjwal Deep Dahal, who leads Druk Holdings as chief executive, said that the bitcoin investment was tactical. The goal was to spread investments beyond conventional markets and traditional industries.

The country’s approach took advantage of rivers fed by melting Himalayan glaciers, which power Bhutan’s electrical grid. Hydropower stands as the nation’s largest export and drives much of its economy. Production varies by season, creating surplus electricity during summer months when snow melts and shortages during winter.

Dahal explained that bitcoin mining served as a solution to this seasonal imbalance. The cryptocurrency can function like a battery, he said. Bitcoin generated during summer months with excess power can protect the country’s energy needs in winter while building foreign currency reserves.

The cryptocurrency push came during difficult economic times for Bhutan. The COVID-19 pandemic hit the tourism sector hard, which provides the second-largest share of government revenue. Meanwhile, joblessness among young people climbed, driving many Bhutanese to leave the country seeking better prospects abroad.

Out of Bhutan’s 750,000 residents, about 10% have relocated overseas as of last year. Even workers in government jobs, traditionally seen as secure employment, quit in large numbers. Entire villages now consist mainly of older residents as younger generations departed.

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