Bhutan’s state-owned investment arm, Druk Holding and Investments (DHI), has been systematically selling portions of the country’s Bitcoin reserves, moving about $42.5 million in BTC and USDT so far in 2026.

According to data from Arkham Intelligence, the transfers appear to be part of a planned treasury drawdown and liquidity management strategy rather than a reaction to market volatility.

One notable transaction involved 175 BTC valued at roughly $11.85 million sent to an address that had previously received 184 BTC in February.

Earlier transfers totaling about $30.7 million included transactions to trading firm QCP Capital and a $1.5 million USDT transfer to a Binance hot wallet.

Because Bhutan mined much of its Bitcoin using surplus hydropower, the government maintains a near-zero cost basis, meaning every sale generates profit for the state.

Bhutan’s Bitcoin holdings peaked at roughly 13,000 BTC in late 2024 following several years of accumulation through state-backed mining operations.

Since then, the reserves have fallen to around 5,400 BTC, representing a 58 percent reduction.

The value of the holdings has also declined from more than $1.5 billion when Bitcoin traded near $126,000 to approximately $374 million with the cryptocurrency currently around $69,000.

Despite the reduction, Bhutan remains one of the largest government holders of Bitcoin globally, ranking seventh behind the United States, which controls more than 328,000 BTC worth nearly $22 billion.

DHI, Bhutan’s sovereign wealth fund responsible for managing state enterprises and digital assets, has been sending funds in consistent transaction sizes to the same counterparties, suggesting structured liquidity planning rather than opportunistic selling.

In December, Bhutan also pledged up to 10,000 BTC to support the development of Gelephu Mindfulness City, a special economic zone designed to hold digital assets as part of its reserves.

Prime Minister Tshering Tobgay has stated that proceeds from Bitcoin sales help finance public services such as healthcare, environmental programs, and government salaries.

Bhutan’s state-backed mining operations have been powered largely by surplus hydropower, though profitability has declined following the 2024 Bitcoin halving, which reduced mining rewards to 3.125 BTC and prompted some energy resources to be redirected toward high-performance computing.