Bhutan's GMC Taps 3iQ to Manage Part of Its 10,000 BTC Treasury

Bhutan's Gelephu Mindfulness City (GMC) has taken its first step in utilizing part of its bitcoin treasury, which totals up to 10,000 BTC pledged earlier. The city hired Toronto-based asset manager 3iQ Corp. to manage the funds using a low-risk, market-neutral strategy aimed at generating long-term returns.

The size and source of the bitcoin mandate were not disclosed, but officials say the deal is intended to create jobs for Bhutanese youth and build skills in technology and finance. GMC declined to disclose the size of the mandate, but stated that it selected 3iQ Corp. to generate long-term returns through a low-risk investment approach.

The market-neutral strategy covers a range of possibilities, including basis trades and lending, which usually yield at least 5% annually in the general market. GMC did not say whether any specific approach has been selected for its bitcoin mandate.

This development comes amid ongoing questions about Bhutan's earlier pledge of up to 10,000 BTC. In December, King Jigme Khesar Namgyel Wangchuck pledged the allocation as a long-term national asset for the city's development, with collateralization, treasury strategies or holding all listed as options still under consideration.