Bhutan Sells $22.4M Bitcoin as Portfolio Declines 70%

Edgen Crypto

·Feb 05 2026, 03:57

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Key Takeaways

The Kingdom of Bhutan has moved $22.4 million in Bitcoin from its sovereign wallets, with a portion sent directly to an institutional market maker. This transaction occurs as the value of the nation's broader crypto portfolio has fallen by over 70% from its peak, raising questions about the conviction of state-level crypto investors.

Sovereign Sale: Bhutan transferred $22.4 million in Bitcoin from its state-controlled wallets during the first week of February 2026.
Institutional Destination: A portion of the funds was sent directly to institutional market maker QCP Capital, indicating a structured, off-market transaction.
Portfolio Drawdown: The sale comes as Bhutan's crypto portfolio value has dropped from a $1.4 billion peak to approximately $412 million, a decline of more than 70%.

Bhutan Liquidates $22.4M in Bitcoin Holdings

During the week of February 2, 2026, the Kingdom of Bhutan executed a significant transfer of its Bitcoin reserves, moving $22.4 million from its sovereign wallets. A notable portion of this transaction was sent directly to QCP Capital, a prominent institutional crypto market maker. This direct-to-institution transfer suggests a structured sale rather than an open-market disposal, a strategy often used to minimize immediate price impact and secure a specific execution price.

Sovereign Crypto Portfolio Declines Over 70%

This liquidation happens as Bhutan's digital asset portfolio navigates a substantial drawdown. The nation's crypto holdings, which reached a peak valuation of $1.4 billion, have seen their worth fall to approximately $412 million. The move to sell a fraction of its remaining Bitcoin could signal a strategic shift to de-risk its exposure or realize cash. The sale by a sovereign entity introduces concerns about the long-term conviction of state-level actors in the cryptocurrency market, potentially influencing broader investor sentiment.