TLDR
- Solana Labs CEO Anatoly Yakovenko opposed Cardano’s plan to convert $100M ADA into Bitcoin and stable assets.
- Yakovenko stated altcoin teams should not manage Bitcoin for users and should focus on low-risk assets like U.S. Treasury bills.
- Cardano co-founder Charles Hoskinson defended the plan as a yield strategy to grow the treasury and buy back ADA.
- Hoskinson said the strategy could continue annually for 5–10 years, potentially expanding the treasury to over $1 billion.
- Polkadot community also proposed converting DOT into BTC via tBTC, aiming to diversify its treasury and reduce volatility.
Solana Labs CEO Anatoly Yakovenko has criticized Cardano’s strategy of converting ADA into Bitcoin and other stable assets. He stated altcoin projects should not manage BTC holdings on behalf of their users. Instead, he recommended holding short-term assets like U.S. Treasury bills to secure operational funds.
Yakovenko’s remarks followed Cardano co-founder Charles Hoskinson’s suggestion to convert $100 million worth of ADA into Bitcoin. The plan aimed to generate yield and grow the Cardano treasury over time. Yakovenko responded by arguing that individuals, not project teams, should manage their own Bitcoin.
This is so dumb. Projects should keep 18-36 months of post kill list runway in short term tbills but that’s about it. Why would anyone want a team to buy and hold bitcoin for them when they can do it themselves? Why pay for all those coconuts.
— toly 🇺🇸 (@aeyakovenko) June 16, 2025
The Solana executive asserted that altcoin teams are responsible for financial stability, not speculative investments. He emphasized that holding BTC exposes users to unnecessary risks. Yakovenko believes operational assets should prioritize predictability, not volatility.
Cardano Pushes Ahead with Treasury Diversification
Cardano’s leadership has proposed converting ADA into Bitcoin to diversify its treasury and generate long-term returns through yield. Hoskinson claimed this strategy would not negatively impact Cardano’s ecosystem. Instead, he believes it could potentially grow the fund to over a billion dollars.
The proposal includes converting ADA into BTC and stable assets and continuing this process annually for five to ten years. Hoskinson asserted that the returns would support ADA buybacks and strengthen the ecosystem. He maintained that the strategy could provide a sustainable financial base for Cardano.
Cardano’s approach follows a firm belief in competing with Bitcoin’s dominance in the digital asset space. Hoskinson stated Bitcoin was not the only valid sound money blockchain. He reaffirmed Cardano’s position as the primary contender to overtake BTC in the long run.
Polkadot Community Also Eyes BTC Reserves
The Polkadot community has proposed converting DOT into BTC and stablecoins through a structured plan using tBTC and the Hydration platform. The strategy includes changing 500,000 DOT into tBTC over one year to create a diversified reserve. Proposers believe BTC will help reduce volatility and protect treasury value.
Community members suggested introducing liquidity into the Omnipool while maintaining transaction efficiency with an extra DOT reserve. The approach involves converting DOT into a collateral token to earn yield and support borrowing. This would improve DOT availability and treasury performance.
Polkadot’s proposal emphasizes transparency, decentralization, and sustainability. By incorporating BTC into the treasury, Polkadot aims to create long-term capital strength. The plan aligns with earlier diversification steps, including the use of USDT and USDC in treasury management.
