Bhutan has quietly reduced its bitcoin holdings in recent months, with government-linked transfers exceeding $40 million so far this year, according to blockchain analytics data.

The sales come as the Himalayan nation continues to manage one of the world’s most unusual sovereign crypto reserves, built primarily through state-backed bitcoin mining powered by surplus hydropower.

Data from Arkham Intelligence shows that the Royal Government of Bhutan moved 175 BTC worth approximately $11.85 million late on Monday.

The transfer was sent to the same bc1q wallet address that received 184 BTC worth $14.09 million in February, suggesting a recurring counterparty likely used for over-the-counter (OTC) transactions or treasury management.

The transactions are conducted by Druk Holding and Investments (DHI), Bhutan’s state-owned investment arm that oversees the country’s bitcoin mining operations.

The latest transaction adds to a series of bitcoin outflows earlier this year.

According to Arkham data, Bhutan moved about $30.7 million worth of digital assets in February alone.

Those transactions included the 184 BTC transfer as well as two separate transfers totaling roughly 200 BTC worth about $15 million sent to a merchant deposit address associated with trading firm QCP Capital.

Another transaction in February involved a $1.5 million USDT transfer to a Binance hot wallet.

Combined with Monday’s $11.85 million transfer, Bhutan’s bitcoin outflows for 2026 now total roughly $42.5 million.

Arkham noted that Bhutan has been periodically selling portions of its bitcoin “in clips of $5 million to $10 million.”

The transfers to QCP Capital also suggest the possibility of OTC sales or liquidity management through trading counterparties rather than simple transfers between internal wallets.

While the recent transactions are modest compared with Bhutan’s earlier reserves, blockchain data shows that the country’s bitcoin holdings have declined significantly since late 2024.

Bhutan’s bitcoin treasury peaked at around 13,000 BTC during that period after several years of accumulation through hydroelectric-powered mining operations.

Since then, the country’s holdings have dropped to roughly 5,400 BTC, representing a decline of about 58%.

The value of Bhutan’s holdings has also been affected by bitcoin’s price decline.

The cryptocurrency traded near $119,000 at its peak but has since fallen to around $69,000.

At its height, Bhutan’s bitcoin reserves were estimated to be worth more than $1.5 billion.

At current prices, the country’s holdings are valued at roughly $374 million.

The drawdown began after October 2024 and has continued steadily, according to blockchain balance history data.

Despite the reduction, Bhutan still remains one of the largest sovereign holders of bitcoin.

Bhutan’s bitcoin holdings are unique among government reserves because most of the assets were mined rather than purchased.

The country has built its cryptocurrency reserves using surplus hydropower to power mining operations.

This means Bhutan’s cost basis for the digital assets is effectively minimal compared with corporate treasuries that acquired bitcoin through market purchases.

The mining strategy has allowed the government to accumulate bitcoin gradually since around 2021.

In December, Bhutan also announced a national Bitcoin Development Pledge committing up to 10,000 BTC to support the Gelephu Mindfulness City project, a special economic zone designed to incorporate digital assets into its financial system.

Druk Holding and Investments continues to manage the country’s bitcoin reserves as part of its broader investment strategy.

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