Bhutan continues to reduce its Bitcoin holdings, with blockchain data showing a steady stream of transfers as the country unwinds part of the reserve it built through years of state-backed mining.

Data from Arkham Intelligence shows the Himalayan kingdom moved another 175 BTC late Monday, worth roughly $11.85 million. The coins were sent to the same bc1q wallet address that received 184 BTC—valued at about $14.09 million—in February, pointing to a consistent counterparty likely involved in over-the-counter trading or treasury management.

The transactions are linked to Druk Holding and Investments (DHI), Bhutan’s state-owned investment arm responsible for overseeing the country’s bitcoin mining operations.

February’s movements were broader than a single transaction. Arkham data indicates four separate outflows that month, including the 184 BTC transfer as well as two deposits totaling about 200 BTC—worth roughly $15 million—sent to a merchant deposit address associated with QCP Capital. Another transfer involved around $1.5 million in Tether being sent to a hot wallet at Binance.

Those transfers amounted to roughly $30.7 million in February alone. When combined with Monday’s $11.85 million movement, Bhutan’s crypto outflows in 2026 have reached approximately $42.5 million.

The transfers involving QCP Capital stand out because they involve sending bitcoin directly to a trading firm’s deposit address multiple times within a single month. Such activity suggests potential OTC sales or structured liquidity management rather than simple internal wallet transfers.

Looking at the broader trend, Bhutan’s bitcoin reserves have declined significantly from their peak. The country’s holdings reached roughly 13,000 BTC in late 2024 after several years of accumulation through mining operations powered by surplus hydropower.

Since October 2024, however, the balance has fallen sharply. Bhutan’s stack has dropped from around 13,000 BTC to just under 5,400 BTC—representing a reduction of about 58%. The total value has also been impacted by bitcoin’s price decline from roughly $119,000 at the peak to about $69,000 currently.

At its highest point, Bhutan’s bitcoin position was likely valued at more than $1.5 billion. Today, the remaining holdings are estimated to be worth about $374 million.

Despite the drawdown, the country continues to integrate digital assets into its broader economic plans. In December, Bhutan announced a Bitcoin Development Pledge committing up to 10,000 BTC to support the development of Gelephu Mindfulness City, a special economic zone intended to incorporate digital assets into its financial reserves.

Because Bhutan mined most of its bitcoin using excess hydropower, the country’s cost basis is effectively minimal. Unlike corporate treasuries such as Strategy that purchased bitcoin on the open market, Bhutan faces little pressure from price levels when deciding to sell, meaning any liquidation is likely profitable.

Blockchain balance data also illustrates the broader arc of Bhutan’s holdings: gradual accumulation from near zero in early 2021, steady growth through the crypto bear market, a surge to roughly 13,000 BTC by late 2024, followed by a sharp and continuing decline.

The pattern of repeated transfers of similar size to the same counterparties suggests a structured treasury strategy rather than reactive selling tied to short-term market movements.

Druk Holding and Investments did not immediately respond to a request for comment from CoinDesk during Asian morning hours.