As Bhutan speeds up sales of its bitcoin (BTC) holdings, some observers say the country’s bitcoin reserves could be effectively depleted around September if the current trend continues.

On May 12 local time, blockchain outlet Cryptopolitan reported that Bhutan recently disposed of an additional 100 BTC worth about $8.1 million. Arkham Intelligence analysed that if sales averaging about $50 million a month continue, Bhutan could exhaust all its remaining bitcoin holdings before the end of September.

Bhutan has sold a total of $230.39 million worth of bitcoin so far this year, and the value of its remaining holdings is about $252 million. The sale is not a one-off transaction but an extension of gradual disposals that have continued throughout the year, with some volume handled via Singapore-based trading firm QCP Capital. In March, Bhutan moved more than $120 million worth of bitcoin in several transactions, including one transfer of 519.7 BTC valued at $36.75 million.

Bhutan’s bitcoin holdings peaked at 13,295 BTC on Oct. 1, 2024, and are managed by state-owned investment entity Druck Holding & Investment. The entity has not officially disclosed a sales schedule or whether it plans to dispose of all reserves.

Behind Bhutan’s reduction in bitcoin holdings is worsening mining profitability. Since 2019, it has built a sizable national stockpile by mining bitcoin using surplus electricity generated by hydropower based on glacial water systems, but the production cost per coin doubled after the April 2024 block reward halving. Mining output has also fallen sharply from an estimated 8,200 BTC in 2023, and no on-chain deposits exceeding $100,000 have been confirmed over the past 12 months.

The sale also ties into national development projects. Bhutan is expected to use bitcoin funds to develop the Gelephu Mindfulness City (GMC), a special administrative region in the south. King Jigme Khesar Namgyel Wangchuck said in a National Day speech in December 2025 that he would allocate up to 10,000 BTC to the GMC, stressing it was "for the people, the youth and the nation". The GMC offers a range of benefits to companies regulated in major financial hubs, including fast-track licensing, corporate bank accounts, bitcoin-collateral loans and multi-currency accounts, and supports exemptions from corporate, capital gains and dividend taxes for investment-eligible firms, along with tax exemptions for foreign talent until 2030.

Bhutan’s bitcoin selling trend is not only a national issue. Listed miners including DMG Blockchain Solutions, Bitdeer and Mara Holdings said in recent quarterly reports that they sold mined bitcoin to fund mining operating costs and shift to artificial intelligence (AI) infrastructure.

Arkham Intelligence analysed that if the current pace of selling is maintained, Bhutan’s bitcoin holdings could be fully depleted within the third quarter of 2026. It also estimated that if the bitcoin price holds around $81,000, cumulative profits based on on-chain metrics could total about $767 million over the entire disposal process. Bhutan’s strategy is now being driven by conversion to development funding and changes in mining economics, rather than simply expanding holdings.