The tiny country of Bhutan is quietly selling its bitcoin, and the stack is getting thinner each month.

The Royal Government of Bhutan moved 175 BTC worth $11.85 million late on Monday, according to Arkham Intelligence data, moving assets to the same bc1q wallet address that received 184 BTC worth $14.09 million in February. It suggests a consistent OTC or treasury management counterparty.

The activity is done by Bhutan’s state-owned investment arm, Druk Holding and Investments (DHI), which spearheads the country's BTC mining operations.

The February activity was more extensive than a single transfer. Arkham's outflow data shows four separate moves that month: the 184 BTC transfer, two sends to QCP Capital's merchant deposit address totaling roughly 200 BTC worth $15 million combined, and a $1.5 million USDT transfer to a Binance hot wallet.

That's about $30.7 million in February alone, followed by Monday's $11.85 million, bringing 2026 outflows to roughly $42.5 million.

The QCP Capital transfers stand out as sending bitcoin to a trading firm's deposit address twice in one month is more active than simple treasury drawdowns. It suggests OTC selling or structured liquidity management rather than just moving coins between cold wallets.

The balance history chart tells a bigger story, however.

Bhutan's stack peaked around 13,000 BTC in late 2024, built up over several years through state-backed hydroelectric mining. The drawdown began in earnest after October 2024 and has been steep.

From 13,000 to roughly 5,400 is a 58% reduction in coins. The dollar value has been hit twice, by the selling and by bitcoin's decline from around $119,000 at the peak to $69,000 today.

What was likely a position worth over $1.5 billion at its height is now $374 million.

In December, Bhutan unveiled a national Bitcoin Development Pledge committing up to 10,000 BTC to fund Gelephu Mindfulness City, a special economic zone designed to use digital assets for its financial reserves.

Bhutan mined its coins using surplus hydropower, which means the cost basis is effectively zero. Unlike Strategy or corporate treasuries that bought at market prices, there's no break-even math pressuring these sales. Every transfer is profit.

The Arkham balance chart shows the full arc. A slow build from near zero in early 2021, steady accumulation through the bear market, a ramp to roughly 13,000 BTC by late 2024, and then a sharp decline that hasn't let up.

The transfers have gone to the same counterparties in similar sizes without any obvious correlation to specific price moves, which looks more like a treasury running a planned drawdown than a holder getting shaken out.

Druk holdings did not immediately reply to CoinDesk's request for comment in Asian morning hours.