Gelephu Mindfulness City (GMC), a special administrative zone in southern Bhutan, has appointed Toronto-based 3iQ Corp to manage a portion of their national Bitcoin reserves. This move marks a shift in the state’s asset management strategy. Moving away from its initial plan to hold cryptocurrency purely as long-term reserves, Bhutan is now transitioning to active management to generate yield, with the price of Bitcoin at the $63,512 level.
More Than Just Stored
Bhutan’s King Jigme Khesar Namgyel Wangchuck in December 2025 pledged to allocate up to 10,000 BTC for the city’s development. When announced, those funds were worth around $1 billion. Through the new mandate with 3iQ, this Bitcoin will no longer just sit idle in wallets. The manager is targeting a low-risk, market-neutral strategy, a method that typically yields at least 5% annually.
GMC and 3iQ declined to disclose the exact size of the mandate to CoinDesk. The details of the management have not been finalized either, but the most likely options include basis trading and asset lending. Beyond the numbers, the collaboration is also planned to create new jobs. There are also plans for technology and financial skills training programs for Bhutanese youth, though the exact format is still being drafted.
The Unanswered $1 Billion Trail
Behind this new management move lies a transaction history that remains unresolved. In May 2026, a sharp discrepancy emerged between the claims of the state fund manager and public records on the blockchain network. Ujjwal Deep Dahal, CEO of Druk Holdings - the commercial arm of the Bhutanese government - stated at the time that he did not remember when his company last sold Bitcoin. However, on-chain data tells a different story: approximately $1 billion was recorded flowing out of wallets affiliated with Bhutan.
Until the announcement of 3iQ’s appointment, no party has clarified this discrepancy. GMC and its new manager also did not explain the exact origin of the Bitcoin stash included in this management mandate.
For countries or institutions that make crypto part of their treasury, Bhutan’s strategy demonstrates a standard pattern. Storing thousands of assets without generating added value is ultimately seen as a loss of time, and interest-bearing instruments become the most logical way out.
Reported by CoinDesk.
Also read: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
