The small country of Bhutan is quietly selling its Bitcoin, and its reserves are getting thinner every month.
According to data from Arkham Intelligence, the Royal Government of Bhutan transferred 175 Bitcoins worth $11.85 million on Monday night, moving the assets to the same bc1q wallet address that it received in February for 184 Bitcoins worth $14.09 million. It indicates there is a consistent OTC or money management counterparty.
The activity is being handled by Druk Holding and Investments (DHI), a state-owned investment agency in Bhutan that is pioneering BTC mining operations in the country.
The activity in February was broader than a single transfer. Arkham’s outflow data shows four separate moves during the month: a 184 BTC transfer, two sent to QCP Capital’s merchant deposit address totaling approximately 200 BTC worth a total of $15 million, and a $1.5 million USDT transfer to a Binance hot wallet.
That number was about $30.7 million in February alone and $11.85 million on Monday, bringing outflows in 2026 to about $42.5 million.
QCP Capital transfers stand out because sending Bitcoin to the trading company’s deposit address twice in a month is more active than a simple treasury withdrawal. It recommends over-the-counter trading or structured liquidity management rather than just transferring tokens between cold wallets.
However, the balance history chart tells a bigger story.
Bhutan’s Bitcoin reserves peaked at around 13,000 BTC in late 2024, having been accumulated through years of state-backed hydroelectric mining. After October 2024, the drawdown will officially begin, and the magnitude will be significant.
A 58% reduction from 13,000 to approximately 5,400 coins. The dollar’s value has taken a double hit due to the sell-off and Bitcoin’s fall from around $119,000 at its peak to $69,000 today.
The position, which at its peak may have been worth more than $1.5 billion, now stands at $374 million.
In December, Bhutan unveiled a national Bitcoin development pledge, pledging up to 10,000 Bitcoin to fund Gelephu Mindativity City, a special economic zone designed to use the digital asset as its financial reserve.
Bhutan uses its remaining hydropower resources to mine the coins, which means the cost base is effectively zero. Unlike strategic or corporate funding that buys at market prices, there is no mathematical pressure to break even on these sales. Every transfer is profit.
The Arkham balance diagram shows the complete arc. The number of Bitcoins grew slowly from near zero in early 2021, steadily accumulated during the bear market, increased to approximately 13,000 Bitcoins by the end of 2024, and then declined sharply and continuously.
The funds were moved to the same counterparties of similar size without any clear correlation to specific price movements, making it look more like the Treasury was planning to withdraw funds rather than holders being wiped out.
Druk Holdings did not immediately respond to CoinDesk’s request for comment during early Asian trading hours.
