Bhutan Shifts From Bitcoin Accumulation to Deployment With 10,000 BTC Reserve Plan

Bhutan’s Gelephu Mindfulness City (GMC) is putting part of its bitcoin holdings into active use, selecting 3iQ Corp. to manage the treasury allocation through a market-neutral strategy aimed at generating returns.

GMC, a special administrative region in southern Bhutan, has awarded a mandate to Toronto-based digital asset investment firm 3iQ Corp. to oversee a portion of its bitcoin treasury, according to a statement from the two organizations.

The companies have not disclosed the size of the bitcoin allocation covered by the agreement.

The partnership reveals a shift in GMC’s bitcoin strategy. Instead of keeping the assets solely as a long-term reserve, the city said 3iQ will use a low-risk, market-neutral approach designed to generate yield while reducing exposure to bitcoin price movements.

Market-neutral strategies can involve techniques such as basis trading, lending, and other hedged investment structures. These approaches typically aim to deliver consistent returns regardless of market direction, with similar strategies often producing yields of around 5% annually or more. GMC has not confirmed the exact method that will be used.

The agreement builds on Bhutan’s broader bitcoin initiative announced in December, when King Jigme Khesar Namgyel Wangchuck committed 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 reserve could be held as a strategic asset, used as collateral, or deployed through treasury management strategies.

The scale of 3iQ’s mandate has attracted attention because questions remain over the movement and management of Bhutan’s bitcoin reserves.

In May, CoinDesk reported that Ujjwal Deep Dahal, CEO of Druk Holdings, Bhutan’s government-backed investment company, said he could not remember the last time the firm sold bitcoin. The statement came after blockchain data showed that around $1 billion worth of BTC had moved from wallets associated with the organization. Neither GMC nor 3iQ has disclosed where the bitcoin under management originated.

GMC said the collaboration is intended to deliver benefits beyond financial performance, including creating employment opportunities for Bhutanese citizens and developing expertise in digital assets, technology, and financial services. The specific initiatives linked to the partnership are still under development.