Anatoly Yakovenko, the Solana Co-Founder and CEO of Solana Labs, has publicly mocked Cardano’s proposal to convert $100 million worth of ADA into Bitcoin (BTC) and other stable assets, calling it a “DUMB” idea.
Yakovenko argued that individuals should hold Bitcoin themselves rather than relying on altcoin teams to do so on their behalf. The Solana Co-Founder further recommended that altcoin projects focus on purchasing low-risk assets like U.S. Treasury bills to cover operational expenses instead of experimenting with Bitcoin treasuries.
The comments came in response to Charles Hoskinson, the co-founder of Cardano, who announced plans to build a Bitcoin treasury as part of a long-term strategy to grow Cardano’s ecosystem. The Solana Co-Founder Yakovenko argued against the strategy. Hoskinson claimed the move would not harm Cardano’s ecosystem but instead strengthen it through yield generation from Bitcoin holdings.
Cardano’s Bold Bitcoin Strategy
According to Charles Hoskinson, Cardano intends to convert $100 million worth of ADA into Bitcoin and other stable assets. The goal is to grow Cardano’s treasury over time by leveraging Bitcoin’s yield potential. Hoskinson explained that the yields generated from Bitcoin could be used to buy back more ADA, creating a self-sustaining cycle.
“If the plan succeeds, we will continue this strategy on an annualized basis for 5 to 10 years,” Hoskinson stated. “This approach has the potential to grow our treasury to over a billion dollars.”
Meanwhile, Hoskinson also emphasized that Cardano would not allow Bitcoin maximalists or the broader Bitcoin ecosystem to dominate the cryptocurrency space. He argued that the biggest threat to Bitcoin’s dominance was—and always would be—Cardano.
Despite his confidence, the crypto community has expressed mixed reactions. Jeff Park of Bitwise Invest joked that altcoin projects ditching their native tokens to create Bitcoin treasuries wasn’t something he expected to see in 2025. Meanwhile, DeFi platform Alva acknowledged the risks involved in Cardano’s plan but suggested it could strengthen its position in decentralized finance if executed successfully.
Polkadot Joins the Bitcoin Treasury Race
Cardano isn’t the only blockchain project exploring Bitcoin as a treasury asset. Just a week prior, the Polkadot community revealed plans to establish a Bitcoin reserve for the Polkadot Treasury. Members proposed converting 500,000 DOT into Threshold BTC (tBTC) over the course of a year using Hydration’s rolling DCA feature.
The proposal aims to diversify the Polkadot Treasury’s holdings by introducing assets like Bitcoin, which are seen as less volatile and capable of maintaining value over time. Community members also suggested reserving an additional 1,000 DOT for transaction fees.
Polkadot’s approach involves converting DOT into a yield-bearing collateral token and distributing it into the Hydration Borrow functionality. This allows the Polkadot Treasury to earn yield on dormant DOT while increasing the supply available for borrowing. Portions of 0.005 tBTC would then be introduced as liquidity into the Hydration Omnipool after a brief accumulation period.
The proposers highlighted tBTC for its decentralization, transparency, and liquidity, making it an ideal candidate for diversifying the Polkadot Treasury.
Yakovenko’s Criticism: Why Altcoins Should Avoid Bitcoin Treasuries
Yakovenko’s criticism of Cardano’s Bitcoin strategy stems from his belief that individuals should take personal responsibility for holding Bitcoin. He argued that altcoin teams don’t need to act as intermediaries for Bitcoin investments, especially when users can easily purchase and hold Bitcoin themselves.
Instead, Yakovenko, the Solana Co-Founder, recommended that altcoin projects focus on acquiring low-risk assets like U.S. Treasury bills to ensure financial stability. These assets, he explained, could cover up to three years of operating expenses without exposing the project to unnecessary risks associated with volatile cryptocurrencies like Bitcoin.
“Altcoin teams should prioritize operational security and sustainability,” Yakovenko said. “Buying Bitcoin for users is not the right approach.”
The Debate Over Bitcoin Treasuries
The debate over whether altcoin projects should hold Bitcoin in their treasuries highlights differing philosophies within the crypto space. On one side, proponents like Hoskinson argue that Bitcoin’s scarcity and store-of-value properties make it a valuable asset for long-term growth. On the other side, critics like Yakovenko believe such strategies are unnecessary and potentially risky, diverting resources away from core development efforts.
While Cardano and Polkadot are forging ahead with their Bitcoin treasury plans, the success of these initiatives remains to be seen. Both projects face significant challenges, including market volatility, regulatory scrutiny, and community skepticism.
Final Thoughts
The emergence of Bitcoin treasuries among altcoin projects marks a new chapter in the evolution of cryptocurrency ecosystems. Whether these strategies will lead to sustainable growth or unintended consequences remains uncertain.
For now, the contrasting views of Anatoly Yakovenko as Solana Co-Founder and Charles Hoskinson underscore the ongoing tension between innovation and pragmatism in the crypto industry. As Cardano and Polkadot implement their respective plans, the broader community will be watching closely to see whether Bitcoin treasuries become a trend—or a cautionary tale.
