Gelephu Mindfulness City, the special administrative region planned in southern Bhutan, has hired Toronto-based 3iQ Corp. to manage part of its bitcoin treasury through a market-neutral strategy aimed at generating yield. The size of the mandate remains undisclosed, and neither firm has said where the bitcoin comes from, leaving open questions about Bhutan's earlier pledge of up to 10,000 BTC.
Gelephu Mindfulness City (GMC), the special administrative region planned in southern Bhutan, has awarded 3iQ Corp. a mandate to manage part of its bitcoin treasury, the two firms said in an email. GMC declined to disclose the size of the mandate.
A shift from holding to yield
The Toronto-based firm will run the funds through a low-risk, market-neutral investment approach designed to generate long-term returns, GMC told CoinDesk. That means the reserve will be deployed for yield rather than simply held. A market-neutral strategy can cover a range of approaches, including basis trades and lending, and such strategies usually yield at least 5% annually in the general market, though GMC did not say whether any specific approach has been selected.
The pledge behind the mandate
In December, Bhutan's king, Jigme Khesar Namgyel Wangchuck, pledged up to 10,000 BTC, then worth about $1 billion. The allocation was called a long-term national asset for the city's development. Collateralization, treasury strategies and holding were all listed as options still under consideration at the time. The mandate's size matters because the pledge behind it has been in question for months.
CoinDesk reported in May that Ujjwal Deep Dahal, CEO of the government's commercial arm, Druk Holdings, Bhutan's sovereign fund, said he did not recall the last time the company sold any bitcoin. His comment disputed onchain data showing that roughly $1 billion had left wallets attributed to it. Neither GMC nor 3iQ has said where the bitcoin under management comes from.
Jobs beyond asset management
Asked what Bhutan gets beyond asset management, GMC pointed to employment for Bhutanese youth and skills development in technology and finance, though the specific programs are still being worked through.
Source: CoinDesk
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