The Kingdom of Bhutan has reduced its exposure to Bitcoin by 70% in recent months.
Arkham facts showed that the country unloaded $18 million worth of BTC (250 coins) on April 10. The move followed another sell-off of 319.7 BTC, worth more than $22 million, on April 9.
This week alone, Bhutan has sold more than $40 million worth of BTC.
So far in 2026, the country has dumped $215.7 million worth of BTC, effectively reducing its total holdings to 3,77,000 BTC, up from the peak of 13,000 BTC in October 2024. That’s a 70% drop in BTC holdings in 18 months.
Intriguingly, experts pointed out that the country has not seen a mining inflow of more than $100,000 in over a year, suggesting that Bhutan may have temporarily halted its BTC mining operations.
The kingdom has used its massive hydropower to boost its BTC supply in recent years.
Unsurprisingly, the BTC price crash has led to problems among miners amid the contracted revenue, forcing most miners to shut down operations or focus entirely on AI ventures.
Any further decline below $65,000 could likely worsen problems for miners. Despite BTC’s recent recovery above $70,000, some analysts still expected the asset to bottom out again.
Will BTC Fall Again?
Bitcoin’s extended +50% pullback from over $126,000 to $60,000 was driven by several factors, including the October crash, four-year cycle fears, and more.
But most importantly, the asset decline coincided with weakness in the US technology sector, as evidenced by the performance of software stocks.
The weakness was due to advances in AI, as analysts predicted mass layoffs and disruptions as new AI-based products would replace most current workflows.
Notably, the recent BTC rally has led to a temporary decoupling of software and gold during the rise whale bids. However, Quinn Thompson, CIO of consultancy Lekker Capital, warned that BTC could fall further.
We’ll soon find out if software tells us something again or if BTC (and the broader market for that matter) decouples. I believe the former.
Final summary
- The Kingdom of Bhutan has sold 70% of its BTC holdings since the end of 2024, leaving only 3,77,000 BTC.
- Analyst Quinn Thompson expected BTC to keep pace with US tech weakness and warned of another potential backlog for the crypto asset.