Bhutan's GMC Activates Part of Its Bitcoin Treasury Following 10,000 BTC Commitment

Gelephu Mindfulness City partners with 3iQ for bitcoin treasury management

Gelephu Mindfulness City (GMC) in southern Bhutan has appointed Toronto-based 3iQ to oversee part of its bitcoin treasury, marking a strategic shift towards a market-neutral investment approach. This decision comes as part of a broader initiative to manage its cryptocurrency holdings beyond merely holding them as long-term assets.

The specifics of the bitcoin allocation remain undisclosed, but GMC has previously committed to acquiring up to 10,000 BTC, which was valued around $1 billion at the time of the announcement. This pledge has faced scrutiny, with reports indicating that significant funds have exited wallets linked to Bhutan’s sovereign fund.

3iQ will implement a low-risk, market-neutral strategy aimed at generating returns rather than simply preserving the assets. This strategy may involve various methods such as basis trading and lending, although GMC has not detailed the specific tactics to be employed.

In December, King Jigme Khesar Namgyel Wangchuck announced the commitment to 10,000 BTC, emphasizing its importance for the city’s development. However, uncertainty surrounds the execution of this strategy, especially in light of conflicting statements from government officials regarding bitcoin sales.

Beyond asset management, GMC aims to leverage this partnership to create job opportunities for local youth and enhance skills in technology and finance, with educational programs currently in the works.