Key Takeaways
- Cardano founder Charles Hoskinson wants to diversify the treasury by buying Bitcoin.
- He’s proposed converting $100 million worth of ADA into BTC and Cardano-native stablecoins.
- The idea is to use the yield from these assets to buy back ADA and strengthen the ecosystem.
Cardano is the latest to join the growing list of crypto networks embracing Bitcoin (BTC) reserves.
In a recent proposal, Cardano founder Charles Hoskinson suggested converting a slice of the blockchain’s $1.2 billion treasury into Bitcoin and stablecoins.
The goal? Boost DeFi activity, attract new investors, and use yield from these assets to buy back ADA.
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$100 Million To Kickstart Cardano’s BTC Strategy
Hoskinson laid out a plan to convert roughly $100 million worth of ADA, around 5–10% of the total treasury, into a mix of BTC and Cardano-native stablecoins like USDM and USDA.
The proposal isn’t just about diversification. It’s a longer-term strategy to grow Cardano’s treasury while also supporting the token’s price through regular buybacks.
“We can create a yield by converting 5% to 10% of the treasury into stable assets like Bitcoin,” Hoskinson said. “And that yield on an annual basis can be used to purchase ADA over time to replenish the treasury.”
He estimated this could generate $5–10 million in ADA per year, which would then be used to buy back tokens from the open market, essentially recycling profits into Cardano’s ecosystem.
If it works, Hoskinson wants to continue the approach over the next decade, potentially growing the treasury to over a billion dollars in Bitcoin and stablecoins.
Not the Only One Thinking About Bitcoin
Cardano isn’t the only one warming up to the idea of holding Bitcoin.
Over in the Polkadot (DOT) ecosystem, there’s a proposal gaining traction that would slowly convert 500,000 DOT into tBTC — a tokenized version of Bitcoin on Ethereum (ETH).
The idea is to use an automated dollar-cost averaging strategy through a tool called Hydration, which quietly buys small amounts of tBTC over time.
No manual trades, no wild swings — just a steady drip of Bitcoin into Polkadot’s treasury.
Polkadot, like Cardano, wants to boost its DeFi scene by adding more on-chain liquidity and incentives for users.
Cardano and Polkadot’s proposal is a sign of where things are heading. Protocols aren’t just holding their own tokens anymore.
As Bitcoin keeps proving itself as a long-term store of value, more projects are looking at it not just as an investment, but as a way to future-proof their ecosystems.
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