Bhutan's Gelephu Mindfulness City taps 3iQ for bitcoin treasury management
The planned city will have 3iQ run part of its bitcoin holdings on a market-neutral basis, moving beyond simple long-term storage.
Bhutan's planned Gelephu Mindfulness City (GMC) is putting a portion of its bitcoin treasury under external management. The city's development arm has selected investment firm 3iQ to run part of the holdings using a market-neutral strategy, according to a report.
The move follows an earlier pledge of 10,000 bitcoin to the city's reserve. While the exact amount delegated to 3iQ was not disclosed, the arrangement represents a shift from the previous approach of simply storing the coins as a long-term national asset.
What market-neutral means
A market-neutral strategy typically uses hedged positions, such as derivatives or arbitrage, to reduce exposure to price swings. For a sovereign or city treasury, this could allow bitcoin holdings to generate returns while limiting downside volatility.
GMC is part of Bhutan's broader effort to integrate digital assets into its economy. The Himalayan kingdom has been actively mining bitcoin for years, and its state investment arm has accumulated a significant stash.