Bhutan’s Gelephu Mindfulness City Puts Bitcoin Treasury to Active Use

Gelephu Mindfulness City, a special administrative region in southern Bhutan, has handed part of its bitcoin treasury to Toronto based asset manager 3iQ Corp, marking a shift away from simply holding the coins as a static reserve. The city declined to reveal how much bitcoin is involved in the arrangement.

Market-Neutral Approach Aims for Steady Returns

Rather than treating its bitcoin as a passive long-term asset, the region confirmed it selected 3iQ specifically to pursue a low-risk, market-neutral investment strategy designed to generate ongoing returns. This type of approach can include tactics like basis trades or lending, which typically produce annual yields of around 5% or more in normal market conditions. No specific strategy has been confirmed yet.

Background on Bhutan’s Bitcoin Pledge

The move follows a December pledge from Bhutan’s king committing up to 10,000 BTC, worth roughly $1 billion at the time, toward supporting the planned mindfulness-based economic hub. At the time, officials described several possible uses for the reserve, including collateralization, active treasury management or simply holding the coins long-term.

Questions Around the Bitcoin’s Origin Persist

The size of this new mandate carries added significance given ongoing uncertainty about the treasury itself. Earlier this year, the head of Bhutan’s government-owned commercial arm disputed on-chain data suggesting roughly $1 billion in bitcoin had moved out of wallets linked to the company, saying he didn’t recall any such sales taking place.

Beyond Financial Returns

When asked what the region gains beyond asset management services, officials pointed to employment opportunities for young Bhutanese citizens and skills development in technology and finance, though specific programs are still being finalized.