Bhutan is steadily exiting one of the most closely watched sovereign bitcoin strategies, continuing a measured reduction in its holdings.

The kingdom’s reserves have declined from roughly 13,000 BTC in October 2024 to 3,954 BTC today, marking a 70% drawdown over 18 months. On-chain data shows $215.7 million in bitcoin has moved out of Bhutan-linked wallets so far in 2026. Its last mining inflow above $100,000 was recorded more than a year ago, indicating that mining activity may have largely ceased.

The latest transfer took place Thursday, when Bhutan moved 319.7 BTC—valued at $22.68 million—according to Arkham Intelligence. Approximately 250 BTC was sent to a wallet previously associated with flows to Galaxy Digital and OKX, pointing to likely liquidation. The remaining 69.7 BTC was transferred to a newly created, unlabeled address.

The transaction is part of a broader trend of sustained outflows.

Bhutan originally accumulated its bitcoin through a hydropower-backed mining initiative led by Druk Holding and Investments, the country’s sovereign wealth fund. The project stood out as an early example of a government leveraging renewable energy to build a digital asset position, with few legacy financial constraints.

That strategy has since shifted toward distribution. Current holdings are valued at approximately $280.6 million, with a significant share of recent outflows routed to unidentified wallets.

The continued sell-down underscores the difficulty of maintaining a sovereign bitcoin allocation through extended periods of market volatility. It also highlights the gap between bitcoin’s theoretical appeal as a reserve asset and the practical realities of managing exposure at scale.

With just 3,954 BTC remaining, Bhutan’s position is now relatively small compared to institutional buyers. Strategy, for example, has at times accumulated more bitcoin in a single week than Bhutan’s entire current holdings, reflecting a broader shift in market leadership toward corporate balance sheets.