Bhutan has once again trimmed its Bitcoin holdings without fanfare. On Monday, the Royal Government of Bhutan transferred 175 BTC (worth $11.85 million) to the same bc1q address that received 184 BTC in February, according to Arkham Intelligence. The pattern points to a deliberate over-the-counter (OTC) sell-off managed by the country's investment arm, Druk Holding and Investments (DHI).
February Activity Reveals Structured Offloading
February's on-chain data showed as many as four separate outflows. The bundle included the 184 BTC transfer, two deposits totaling roughly 200 BTC to QCP Capital's merchant address, and a $1.5 million USDT transfer to a Binance hot wallet. Combined, February outflows hit about $30.7 million. Adding Monday's $11.85 million, total 2026 outflows now approach $42.5 million.
The repeated QCP Capital deposits stand out. Sending Bitcoin twice to a trading firm's deposit address in one month is unusual. Treasury managers are likely executing measured OTC sales or structured liquidity operations rather than random internal transfers.
Hydropower Mining Built a Low-Cost Hoard
Bhutan accumulated most of its Bitcoin through state-backed mining powered by surplus hydropower, resulting in a very low cost basis. Holdings peaked near 13,000 BTC in late 2024. Since then, the balance has dropped by roughly 58% to about 5,400 BTC today.
The portfolio's dollar value took an even harder hit. Bitcoin's price slid from around $119,000 to $69,000, pushing the reserves from a peak of over $1.5 billion down to approximately $374 million.
Gelephu Mindfulness City Drives the Drawdown
In December 2025, Bhutan announced its National Bitcoin Development Pledge, allocating up to 10,000 BTC to fund the Gelephu Mindfulness City — a special economic zone for digital assets. The ongoing reductions align with that pledge. Arkham's chart confirms Bhutan accumulated steadily from 2021 onward, even through bear markets, and is now entering a controlled release phase to finance long-term development.