Bhutan sells $42.5M in Bitcoin in 2026 as its national holdings fall 58% from their peak.

Bhutan appears to be steadily reducing its Bitcoin reserves, with the country’s holdings shrinking significantly from their peak over the past year.

On Monday, the Himalayan kingdom transferred another 175 BTC—valued at about $11.85 million—according to blockchain data from Arkham Intelligence. The coins were sent to the same bc1q wallet address that received 184 BTC, worth roughly $14.09 million, in February, suggesting the involvement of a consistent over-the-counter trading or treasury management counterparty.

The transactions were carried out by Druk Holding and Investments (DHI), the country’s state-owned investment arm responsible for Bhutan’s bitcoin mining operations.

February’s activity involved more than a single transfer. Data from Arkham shows four separate outflows during the month, including the 184 BTC transfer as well as two deposits totaling around 200 BTC—valued at roughly $15 million—sent to a merchant deposit address linked to QCP Capital. Another transfer included approximately $1.5 million worth of Tether sent to a hot wallet at Binance.

Those transactions totaled about $30.7 million in February, and Monday’s $11.85 million transfer brings Bhutan’s estimated crypto outflows in 2026 to roughly $42.5 million so far.

The transfers to QCP Capital stand out because they involved sending bitcoin directly to a trading firm’s deposit address twice in one month. That level of activity suggests possible OTC sales or structured liquidity management rather than simple movements between internal wallets.

The broader trend in Bhutan’s bitcoin holdings tells an even larger story. The country’s reserves peaked at around 13,000 BTC in late 2024 after several years of accumulation through state-backed mining powered by surplus hydropower. Since October 2024, however, the holdings have declined sharply.

Bhutan’s stack has fallen from roughly 13,000 BTC to just under 5,400 BTC, representing a reduction of about 58%. The decline in value has been compounded by bitcoin’s own price drop—from around $119,000 at the peak to about $69,000 today.

At its height, the position was likely worth more than $1.5 billion. Today, the remaining holdings are valued at roughly $374 million.

Despite the drawdown, Bhutan has signaled continued interest in integrating digital assets into its national strategy. In December, the government introduced a Bitcoin Development Pledge that commits up to 10,000 BTC to support the development of Gelephu Mindfulness City, a special economic zone intended to incorporate digital assets into its financial reserves.

Bhutan’s bitcoin was mined using excess hydropower capacity, meaning the country’s cost basis is effectively negligible. Unlike corporate treasuries such as Strategy that acquired bitcoin at market prices, Bhutan faces no pressure to sell at a particular break-even level—making any liquidation effectively profitable.

Blockchain data also shows the long-term trajectory of Bhutan’s holdings: a gradual buildup beginning near zero in early 2021, steady accumulation through the crypto bear market, a surge to roughly 13,000 BTC by late 2024, and a sharp reduction since then.

The pattern of transfers—often in similar sizes and directed to the same counterparties—suggests a structured treasury strategy rather than panic selling tied to market swings.

Druk Holding and Investments did not immediately respond to a request for comment from CoinDesk during Asian morning hours.