Bhutan's GMC puts part of its bitcoin treasury to work after 10,000 BTC pledge
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Summary
Gelephu Mindfulness City (GMC) in southern Bhutan has hired Toronto-based 3iQ Corp. to manage part of its bitcoin treasury using a low-risk, market-neutral investment strategy aimed at generating long-term returns. The exact size of the bitcoin mandate and its source have not been disclosed, amid questions regarding Bhutan’s earlier pledge of up to 10,000 BTC. Beyond asset management, GMC said the deal is also intended to create jobs and develop technology and finance skills for Bhutanese youth, though specific programs are still being developed.
Why it matters
This development matters because it provides clarity on how Bhutan’s bitcoin holdings are being managed, shifting from simply holding the asset to actively deploying it for yield generation. This reflects a strategic approach to managing sovereign cryptocurrency reserves, potentially influencing how other governments or regions manage similar assets. The initiative’s focus on youth employment and skills development also suggests broader economic and social goals linked to the digital asset management.
Key context
In December, Bhutan’s king pledged up to 10,000 BTC as a long-term national asset for Gelephu Mindfulness City, with various options including collateralization, treasury strategies, or simple holding under consideration. Questions have arisen about the pledge’s scale and activity, especially after onchain data indicated roughly $1 billion leaving wallets linked to government entities, which officials disputed. The market-neutral strategy chosen by GMC typically includes methods like basis trades and lending, which in general markets yield at least 5% annually.
Key numbers and entities
The entities involved are Gelephu Mindfulness City (GMC), a special administrative region in southern Bhutan; 3iQ Corp., a Toronto-based investment company; and Bhutan’s king, Jigme Khesar Namgyel Wangchuck. The pledged bitcoin amount is up to 10,000 BTC, worth about $1 billion at the time of the announcement. The exact size of the bitcoin mandate now managed by 3iQ has not been disclosed.
What remains unclear
The exact size and origin of the bitcoin mandate managed by 3iQ remain undisclosed, with ongoing uncertainty about how much bitcoin Bhutan still holds from the initial pledge. GMC has not specified the exact market-neutral strategies that will be used, nor provided details on the employment and skills development programs tied to this initiative.