The Royal Government of Bhutan transferred 100 Bitcoin (BTC), worth approximately $6.77 million, to a WBTC merchant deposit address associated with institutional market maker QCP Capital on Thursday, February 12, 2026. On-chain data from Arkham Intelligence reveals this is an extension of a recent sell-off pattern, as the government executed a similar transfer of 100 BTC (worth $8.31 million at the time) to the same QCP address just two weeks prior.
The transaction suggests the government is actively managing its cryptocurrency portfolio, potentially engaging in liquidity management or preparing for sales into liquid markets. While not confirming an outright sale, the movement of significant BTC amounts to a firm like QCP Capital indicates strategic financial activity. This aligns with broader institutional selling pressure; data from SosoValue shows institutions withdrew $276.30 million from U.S. spot Bitcoin ETFs on February 11.
Bhutan's crypto portfolio is currently valued at around $381.56 million, with Bitcoin constituting the vast majority at $381.51 million. Ethereum is its second-largest holding at just $49.56k. Unlike many nations that acquire Bitcoin through seizures, Bhutan has primarily built its holdings through state-sponsored mining operations that began in 2019, utilizing renewable hydroelectric power.
The government's recent sales coincide with intense pressure on Bitcoin mining profitability. Bitcoin's price has declined significantly, trading around $67,186 at the time of reporting—more than 30% below its 2025 high of $97,860 and nearly 50% below its all-time high of $126,198 from October 2024. Data indicates Bitcoin is trading below its estimated production cost, which Checkonchain reported was around $87,000 previously and now sits near $79,253. This price dip has triggered widespread miner capitulation, forcing operations to sell holdings to cover costs.
Despite these sales, identified government wallets still hold roughly $372 million worth of BTC, reflecting a gradual shift from mining accumulation toward strategic reserve management. Experts from 10X Research warn that Bitcoin's current downtrend could continue as investors are not yet fully positioned to reverse it.
