Bhutan appears to be steadily reducing its Bitcoin reserves, with blockchain data showing a continued series of transfers as the country trims a position built through years of state-backed mining.
According to data from Arkham Intelligence, Bhutan moved another 175 BTC late Monday, worth roughly $11.85 million. The funds were sent to the same bc1q wallet address that received 184 BTC—valued at about $14.09 million—in February, suggesting the presence of a regular counterparty possibly involved in over-the-counter trading or treasury management.
The transactions are linked to Druk Holding and Investments (DHI), the government’s state-owned investment firm that oversees Bhutan’s bitcoin mining operations.
Activity in February was broader than a single transfer. Arkham data shows four separate outflows that month, including the 184 BTC transfer along with two deposits totaling about 200 BTC—worth roughly $15 million—sent to a merchant deposit address tied to QCP Capital. Another transfer involved approximately $1.5 million in Tether sent to a hot wallet at Binance.
Those February transactions totaled around $30.7 million. Combined with Monday’s $11.85 million transfer, Bhutan’s crypto outflows so far in 2026 amount to roughly $42.5 million.
The transfers involving QCP Capital stand out because sending bitcoin to a trading firm’s deposit address multiple times in one month suggests more than simple treasury reshuffling. The pattern points toward possible OTC sales or structured liquidity management rather than routine wallet transfers.
The broader trend in Bhutan’s bitcoin reserves shows a sharp decline from previous highs. The country’s holdings peaked at roughly 13,000 BTC in late 2024 after years of accumulation through mining operations powered by surplus hydropower.
Since October 2024, however, the balance has steadily fallen. Bhutan’s holdings have dropped from around 13,000 BTC to just under 5,400 BTC—representing a reduction of about 58%. The decline has been compounded by bitcoin’s price drop from roughly $119,000 at its peak to about $69,000 today.
At its highest point, Bhutan’s bitcoin reserves were likely valued at more than $1.5 billion. Today, the remaining holdings are estimated to be worth around $374 million.
Despite the reduction, Bhutan continues to incorporate digital assets into its economic strategy. In December, the government introduced a Bitcoin Development Pledge committing up to 10,000 BTC toward the development of Gelephu Mindfulness City, a special economic zone designed to incorporate digital assets into its financial reserves.
Because Bhutan mined its bitcoin using surplus hydropower, its cost basis is effectively minimal. Unlike corporate treasuries such as Strategy that purchased bitcoin at market prices, Bhutan faces little pressure tied to specific price levels when deciding to sell.
Blockchain balance data illustrates the full trajectory of Bhutan’s holdings: gradual accumulation from near zero in early 2021, steady growth during the crypto bear market, a surge to roughly 13,000 BTC by late 2024, followed by a sharp and ongoing drawdown.
The repeated transfers of similar size to the same counterparties suggest a structured treasury strategy rather than reactive selling driven by short-term market volatility.
Druk Holding and Investments did not immediately respond to a request for comment from CoinDesk during Asian morning hours.
