- Cardano plans to convert $100 million ADA into Bitcoin to grow its treasury.
- However Solana’s CEO called the move “dumb,” sparking debate in the crypto community.
Cardano is stirring the crypto waters again—this time with a bold proposal to convert $100 million worth of ADA into Bitcoin and other stable assets. The move, championed by Cardano co-founder Charles Hoskinson, aims to grow the Cardano Foundation’s treasury over time. However, Solana Labs CEO Anatoly Yakovenko has dismissed the plan as “dumb,” igniting a fierce debate over treasury management in the crypto space.
A Bold Strategy or a Risky Gamble?
Hoskinson believes converting ADA into Bitcoin could provide yield that helps grow the foundation’s reserves. He suggests that returns generated from Bitcoin could be used to repurchase ADA, creating a sustainable financial loop. If the strategy works, Cardano plans to repeat the process yearly for 5 to 10 years, potentially scaling the treasury to over $1 billion.
Yet this forward-looking financial engineering hasn’t impressed everyone. Yakovenko took to X (formerly Twitter), questioning the logic behind such a move. He argued that crypto projects should prioritize stability and hold low-risk assets like U.S. Treasury bills to fund operations, rather than risky assets like Bitcoin.
Yes. Next another 10% to create a @solana treasury.@invest_answers @aeyakovenko
😂😂😂🤣💯— machtuk 💎🌏 (@machtuk) June 16, 2025
Cardano Critics Ask: “Why Pay for All These Coconuts?”
Yakovenko’s criticism was laced with sarcasm: “Why would anyone need a team to buy and hold Bitcoin for them when they can do it themselves? Why pay for all these coconuts?” His comments suggest that individuals—not blockchain organizations—should be the ones investing in Bitcoin, as the asset offers no unique benefit to a project’s core operations.
The debate has split the crypto community. Some, like Jeff Park of Bitwise Invest, expressed surprise, noting that giving up native tokens like ADA for BTC was not on his “2025 bingo card.” Others, including DeFi platform Alva, acknowledged the risk but also saw the potential for Cardano to strengthen its DeFi position through the move.
A Trend in the Making?
Interestingly, Cardano’s announcement follows a similar proposal from the Polkadot community to build a Bitcoin reserve, suggesting that BTC-based treasuries may become a trend among blockchain foundations. Still, critics warn that sacrificing native tokens for a volatile asset like Bitcoin could backfire if the strategy fails.
As crypto matures, how projects manage their war chests may define their longevity—and their reputation.
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