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Bhutan's GMC puts part of its bitcoin treasury to work after 10,000 BTC pledge
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Bhutan's Gelephu Mindfulness City (GMC) has hired Toronto-based 3iQ Corp. to manage part of its bitcoin treasury, marking a shift from simply holding the cryptocurrency to actively seeking yield. The special administrative region in southern Bhutan announced the mandate but declined to disclose the size of the bitcoin involved. This follows a pledge in December by Bhutan's king, Jigme Khesar Namgyel Wangchuck, to allocate up to 10,000 BTCâthen worth about $1 billionâas a long-term national asset.
GMC said 3iQ will employ a low-risk, market-neutral investment strategy designed to generate long-term returns, rather than leaving the bitcoin idle. Market-neutral approaches include basis trades and lending, which typically yield at least 5% annually, though the specific strategy has not been confirmed. This departs from the original plan, which listed holding, collateralization, and treasury strategies as options still under consideration.
The size of the mandate matters because the pledge behind it has faced scrutiny for months. In May, CoinDesk reported that Ujjwal Deep Dahal, CEO of Druk HoldingsâBhutan's commercial armâsaid he did not recall the last time the company sold bitcoin, contradicting onchain data suggesting roughly $1 billion had left wallets linked to the sovereign fund. Neither GMC nor 3iQ has clarified the source of the bitcoin under management.
Outsourcing treasury management signals a professionalization of Bhutan's crypto holdings. By engaging 3iQ, GMC aims to reduce risk while earning returns, potentially setting an example for other state-owned bitcoin treasuries. It also reflects a broader trend of sovereign entities exploring yield generation on digital assets.
Beyond financial returns, GMC emphasized job creation for Bhutanese youth and skills development in technology and finance. The city said specific programs are still being developed, but the partnership is expected to build local expertise. This aligns with GMC's ambition to become a hub for innovation and mindfulness-based development.
Observers will watch for further disclosures about the bitcoin's origin and the exact strategy deployed. Transparency will be key to resolving questions around the earlier pledge. If successful, the 3iQ mandate could pave the way for larger institutional involvement in Bhutan's digital asset ecosystem.
