Bhutan's GMC puts part of its bitcoin treasury to work after 10,000 BTC pledge
Bhutan's government-linked investment arm, GMC, has partnered with 3iQ to deploy a portion of its bitcoin treasury into market-neutral investment strategies. The move aims to generate long-term yields from the nation's significant bitcoin holdings rather than simply holding the assets.
Why it matters
This represents a unique case of a sovereign entity actively integrating cryptocurrency into its national treasury management and investment strategy.
GMC declined to disclose the size of the mandate to CoinDesk.
How the money will be run is the new information. GMC told CoinDesk it selected the Toronto-based company to generate long-term returns through a low-risk, market-neutral investment approach, meaning the reserve is to be deployed for yield rather than simply held.
A market-neutral strategy covers a range of possibilities, including basis trades and lending. Such strategies usually yield at least 5% annually in the general market. GMC did not say whether any specific approach has been selected.
In December, when Bhutan’s king, Jigme Khesar Namgyel Wangchuck, pledged up to 10,000 BTC, then worth about $1 billion, the allocation was called a long-term national asset for the city's development, with collateralization, treasury strategies or holding all listed as options still under consideration.
The mandate's size matters because the pledge behind it has been in question for months.
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