Bhutan Moves Another $8.2M in Bitcoin as Government Wallet Outflows Continue

12. May 2026 Posted by Bailey S. on News

Bhutan’s government-linked bitcoin wallets moved roughly 100.44 BTC worth around $8.2 million on Tuesday, adding to a steady stream of crypto outflows that has intensified throughout 2026.

Blockchain tracking platform Arkham detected three separate transactions sent to an unidentified wallet beginning with “bc1qn” at approximately 5:27 a.m. UTC. The movement has fueled fresh speculation that the Himalayan nation could be trimming its bitcoin reserves further.

According to Arkham’s estimates, Bhutan-linked wallets have already transferred more than $230 million in bitcoin since the beginning of the year, averaging close to $50 million in monthly outflows. Analysts suggested the transactions may be tied to selling activity, though the exact destination of the funds has not been confirmed.

The analytics firm also noted that previous transfers from Bhutan’s holdings were traced to crypto exchange Binance and investment firm Galaxy Digital. However, the latest wallet movement may simply represent a technical migration from older-style bitcoin addresses beginning with “3” to newer SegWit-compatible “bc1q” addresses.

Bitcoin’s address formats have evolved over time, beginning with legacy addresses starting with “1,” followed by Pay-to-Script-Hash addresses beginning with “3.” Native SegWit wallets use the “bc1q” structure, while the newest Taproot format starts with “bc1p.”

Despite the latest transfers, Bhutan still controls approximately 3,119 BTC valued at roughly $252 million, according to Arkham’s data. The country’s holdings have declined significantly from the nearly 13,000 BTC it reportedly held in late 2024, with reserves shrinking by close to 3,000 BTC this year alone.

The kingdom’s digital assets are managed through Druk Holding & Investments, the country’s sovereign investment arm. Based on current treasury data, Bhutan remains one of the world’s largest known state bitcoin holders, ranking behind countries including the United States, China, United Kingdom, Ukraine, El Salvador, United Arab Emirates, and Kazakhstan.

Unlike many governments that accumulated bitcoin through asset seizures, Bhutan built much of its reserve through state-backed mining powered by the nation’s hydroelectric resources. Still, observers have increasingly questioned whether the country’s mining operations have slowed or stopped altogether, as no major inflows into Bhutan-linked wallets have been recorded in over a year.