- Bhutan is steadily trimming its Bitcoin reserves, moving over $42 million in 2026 as part of a calculated treasury strategy.
- Repeated transfers to trading firm addresses suggest Bhutan may be using OTC deals to manage liquidity from its state-backed mining stash.
- Bhutan’s Bitcoin holdings fell from 13,000 BTC to about 5,400 BTC as the government reshapes reserves to support future projects.
Bhutan has started quietly reducing its Bitcoin holdings, and the steady outflows now signal a structured treasury strategy. On Monday, the Royal Government of Bhutan moved 175 BTC worth $11.85 million, according to Arkham Intelligence data.
The transfer went to the same bc1q wallet address that received 184 BTC worth $14.09 million in February. Consequently, analysts see signs of a consistent over-the-counter counterparty. Bhutan’s state investment arm, Druk Holding and Investments (DHI), oversees the transfers.
The firm also manages the country’s large Bitcoin mining operations powered by hydropower. Moreover, February transactions show deeper activity than a single transfer. The pattern now suggests deliberate treasury management rather than random wallet movements.
February Transfers Signal Active Treasury Strategy
February activity revealed multiple transactions tied to Bhutan’s crypto reserves. Arkham’s outflow data shows four separate transfers during the month. These include a 184 BTC move and two transactions to QCP Capital’s merchant deposit address. Together, those sends totaled roughly 200 BTC worth about $15 million.
Additionally, Bhutan transferred $1.5 million in USDT to a Binance hot wallet. Consequently, February outflows alone reached approximately $30.7 million. Monday’s $11.85 million transfer raised total 2026 outflows to nearly $42.5 million.
The QCP Capital transfers stand out in particular. Sending Bitcoin twice in one month to a trading firm deposit address shows unusual activity. Besides, such moves rarely signal simple internal transfers. Instead, the pattern often indicates OTC selling or structured liquidity operations. Moreover, the repeated use of the same counterparties strengthens that view. Treasury managers likely run a measured drawdown strategy.
Bitcoin Mining Built Bhutan’s Massive Holdings
Bhutan once held a much larger Bitcoin reserve built through state-backed mining. The country used surplus hydropower to power large mining operations. Consequently, its cost basis for mined Bitcoin remains extremely low. Bhutan’s holdings peaked near 13,000 BTC in late 2024.
Nevertheless, the balance chart now reflects a significant dip since October 2024. The amount has decreased to approximately 5,400 BTC today. This represents a 58% reduction in the number of coins. Furthermore, the price reduction of Bitcoin has increased the dip in the portfolio. The price has reduced from $119,000 to $69,000 in recent times. Therefore, the amount of Bhutan’s reserves has reduced from more than $1.5 billion to approximately $374 million today.
In December, Bhutan announced its National Bitcoin Development Pledge. In this pledge, up to 10,000 BTC is allocated for the development of Gelephu Mindfulness City. This will create an economic zone for digital assets. Hence, adjustments in the treasury will finance long-term development.
Moreover, the balance chart of Arkham presents the whole story. Bhutan has been accumulating Bitcoin since 2021 and throughout the bear market. However, Bhutan now executes a controlled reduction in its portfolio.
