Bhutan’s Gelephu Mindfulness City (GMC) is taking a more active approach to its bitcoin reserves, with 3iQ Corp. set to manage part of the treasury through a market-neutral strategy rather than simply holding BTC as a long-term asset.
GMC, a planned special administrative region in southern Bhutan, has appointed Canadian crypto investment firm 3iQ Corp. to oversee a portion of its bitcoin treasury, according to an announcement from both sides.
The companies have not revealed the size of the bitcoin allocation covered by the agreement.
The latest details focus on how the funds will be managed. GMC said it selected 3iQ to seek long-term returns through a low-risk, market-neutral framework, allowing the bitcoin reserve to generate income while limiting exposure to direct price fluctuations.
Market-neutral strategies may include methods such as bitcoin basis trades, lending, or other hedged positions. These approaches are generally designed to generate consistent returns, with similar strategies often targeting yields of around 5% annually or higher depending on market conditions. GMC has not confirmed the exact strategy 3iQ will deploy.
The mandate builds on Bhutan’s broader bitcoin initiative announced in December, when King Jigme Khesar Namgyel Wangchuck pledged up to 10,000 BTC, valued at approximately $1 billion at the time, to support the development of Gelephu Mindfulness City. Officials previously said the bitcoin could potentially be held, used as collateral, or managed through treasury strategies.
The size of the 3iQ arrangement remains a key point because questions have emerged around Bhutan’s bitcoin reserves and their current status.
In May, reports highlighted comments from Ujjwal Deep Dahal, CEO of Druk Holdings, Bhutan’s government-owned commercial arm, who said he did not remember when the company last sold bitcoin. The statement came despite blockchain data indicating that roughly $1 billion in BTC had moved from wallets believed to be connected to the entity. Neither GMC nor 3iQ has provided details on the source of the bitcoin being managed.
GMC said the partnership is expected to provide benefits beyond financial management, including creating opportunities for Bhutanese workers and helping build local expertise in technology and financial markets. The specific initiatives tied to the collaboration are still being developed.
