Bhutan’s Gelephu Mindfulness City (GMC) is moving part of its bitcoin treasury beyond passive holding, with 3iQ Corp. set to manage the assets through a market-neutral strategy designed to generate returns.
GMC, a special administrative region in southern Bhutan, selected Toronto-based crypto investment firm 3iQ Corp. to oversee a portion of its bitcoin holdings, according to a statement shared by the companies.
The organizations did not disclose the amount of bitcoin included in the mandate.
The main development is the planned use of the treasury. GMC said 3iQ was chosen to pursue long-term growth through a low-risk, market-neutral approach, meaning some of the bitcoin reserve will be actively deployed to generate yield rather than remain stored as a strategic holding.
Market-neutral strategies can involve approaches such as basis trading, lending, and other hedged investment techniques designed to reduce exposure to bitcoin price movements. These strategies typically aim to produce steady returns, often around 5% or more annually in broader market conditions. GMC has not specified which method 3iQ will use.
The move follows Bhutan’s announcement in December that King Jigme Khesar Namgyel Wangchuck had committed up to 10,000 BTC, worth roughly $1 billion at the time, as a long-term national asset for the development of Gelephu Mindfulness City. At the time, officials said options including holding, collateralizing, or deploying the bitcoin through treasury strategies were being considered.
The size of the 3iQ mandate is particularly important because uncertainty has surrounded Bhutan’s bitcoin holdings in recent months.
Earlier reports indicated that Ujjwal Deep Dahal, CEO of state-owned investment company Druk Holdings, said he could not recall when the organization last sold bitcoin, despite blockchain data showing that around $1 billion worth of BTC had moved from wallets associated with the entity. Neither GMC nor 3iQ has confirmed the origin of the bitcoin being placed under management.
GMC said the partnership is also intended to deliver broader benefits beyond treasury returns, including creating employment opportunities for Bhutanese youth and developing expertise in digital assets, technology, and finance. The exact programs supporting those goals are still being planned.
