Arkham data shows the Royal Government of Bhutan transferred approximately 374.9 BTC ($25.2 million) to an unlabeled address on Tuesday, continuing an accelerating streak of outflows from the Himalayan kingdom’s bitcoin reserves.

Signs of selling

Analysts at Onchain Lens noted that the recipient address had previously forwarded bitcoin received from Bhutan to investment manager Galaxy Digital, suggesting the government may be liquidating holdings.

The specific reason for the transfers remains unknown.

The latest move adds to 519.7 BTC sent on March 25 and 123.7 BTC on March 27, with one address in that batch linked to trading firm QCP Capital.

According to Arkham, outbound transfers from Bhutan government-labeled addresses have now topped 1,000 BTC over the past week.

Reserves in sharp decline

Bhutan still holds approximately 3,954 BTC, currently valued at around $263.9 million, according to Arkham.

That’s a steep drop from a peak of roughly 13,000 BTC in October 2024, with holdings falling by more than 2,000 BTC year-to-date.

The bitcoin is held through Bhutan’s state investment arm, Druk Holding & Investments, making it the seventh-largest known nation-state holder of bitcoin, behind the United States, China, the United Kingdom, Ukraine, El Salvador, and the United Arab Emirates.

Mining origins

Unlike most countries holding bitcoin — which typically acquire it through criminal seizures — Bhutan built its reserves through mining, leveraging abundant hydroelectric power for eco-friendly operations.

However, speculation has grown that the government may have stopped mining altogether, as its last bitcoin inflow exceeding $100,000 occurred more than a year ago, per Arkham.