Bhutan's GMC puts part of its bitcoin treasury to work after 10,000 BTC pledge
The planned Gelephu Mindfulness City says 3iQ will run part of its bitcoin treasury on a market-neutral basis, a shift from holding the coins as a long-term national asset.
Bhutan's Gelephu Mindfulness City (GMC), a special administrative region, has entrusted 3iQ Corp. with managing a portion of its bitcoin treasury. The firm revealed this information via email, though the exact size of the mandate remains undisclosed. GMC disclosed that they chose 3iQ to generate long-term returns through a low-risk, market-neutral investment strategy.
This approach aims to deploy the reserve for yield rather than merely holding it. Market-neutral strategies can include basis trades and lending, typically yielding at least 5% annually in the general market. The size of the mandate is significant as it was part of Bhutan's pledge of up to 10,000 BTC in December, valued at approximately $1 billion.
This allocation was considered a long-term national asset for Gelephu Mindfulness City's development, with various collateralization, treasury strategies, or holding options still under consideration. The exact origin of the bitcoin under management by GMC and 3iQ remains unclear. When asked about the additional benefits for Bhutan beyond asset management, GMC mentioned employment opportunities for Bhutanese youth and skills development in technology and finance. Specific programs are still under development.
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