Bhutan’s Gelephu Mindfulness City (GMC) is shifting part of its bitcoin treasury toward active management, with 3iQ Corp. appointed to deploy the assets through a market-neutral investment strategy.

GMC, a special administrative region being developed in southern Bhutan, has selected Toronto-based digital asset investment firm 3iQ Corp. to manage a portion of its bitcoin holdings, the organizations said in a joint announcement.

The value of the bitcoin allocation assigned to 3iQ has not been disclosed.

The partnership marks a change in how GMC plans to use its bitcoin reserves. Rather than keeping the assets solely as a long-term strategic holding, the city said 3iQ will pursue returns through a low-risk, market-neutral approach designed to generate income while minimizing exposure to bitcoin price volatility.

Market-neutral strategies can include activities such as basis trading, lending, and other hedged positions. These methods are commonly used to create yield without taking a direct directional bet on asset prices and can generate annual returns of around 5% or more under favorable market conditions. GMC has not revealed which specific strategy will be implemented.

The move follows Bhutan’s announcement in December that King Jigme Khesar Namgyel Wangchuck had committed up to 10,000 BTC, worth roughly $1 billion at the time, as a strategic asset for Gelephu Mindfulness City’s development. Officials previously considered multiple options for the reserve, including long-term holding, collateral use, and treasury management.

The size of 3iQ’s mandate is significant because uncertainty has surrounded Bhutan’s bitcoin activity in recent months.

In May, reports cited Ujjwal Deep Dahal, CEO of Druk Holdings, Bhutan’s state-owned investment company, saying he could not recall when the firm last sold bitcoin. His comments followed blockchain data suggesting that about $1 billion worth of BTC had moved from wallets linked to the organization. Neither GMC nor 3iQ has disclosed the source of the bitcoin being placed under management.

Beyond investment returns, GMC said the collaboration is expected to support economic development by creating jobs for Bhutanese youth and expanding expertise in technology, digital assets, and finance. The city added that specific programs connected to the partnership are still being finalized.