Bhutan partners with 3iQ to manage sovereign Bitcoin holdings

The Himalayan kingdom of Bhutan is putting its Bitcoin holdings to work through a partnership with Canadian digital asset manager 3iQ. The agreement will see 3iQ manage a segment of Gelephu Mindfulness City's Bitcoin treasury using low-risk, market-neutral strategies rather than keeping the coins in cold storage.

While the exact size of the Bitcoin segment managed by 3iQ hasn't been disclosed, the partnership extends beyond portfolio management. The Canadian firm plans to establish a physical presence in Gelephu, invest in local talent, and support knowledge transfer to Bhutanese staff.

Royal Bitcoin allocation

The funding for Gelephu Mindfulness City comes from a notable source. In December 2025, King Jigme Khesar Namgyel Wangchuck allocated up to 10,000 BTC from Bhutan's national holdings to support the city's development. As of mid-2026, Bhutan's national holdings stood at approximately 5,600 BTC, down from earlier peaks of nearly 13,000 BTC.

Bhutan remains among the top 10 largest sovereign Bitcoin holders globally, with a population of around 802,000 people. Gelephu Mindfulness City aims to become a robust digital offshore financial hub guided by principles of mindfulness and sustainability.

Market-neutral strategies

The partnership represents the first recorded instance of a sovereign Bitcoin treasury being managed by an external entity. However, market-neutral strategies are not risk-free, as they typically rely on counterparties, trading venues, and execution quality—exposures not present in cold storage.

Observers will likely seek clarity on how GMC's treasury, the national reserve, and the portion assigned to 3iQ relate to each other. Key developments to watch include how quickly 3iQ establishes its Gelephu presence, whether GMC discloses performance figures, and if other sovereign Bitcoin holders follow Bhutan's lead.