Solana, Cardano Clash Over Bitcoin Reserves
The crypto community is sharply divided over the idea of holding Bitcoin in project treasuries, following Cardano co-founder Charles Hoskinson’s proposal to convert $100 million worth of ADA into Bitcoin and other stable assets.
Solana Labs CEO Anatoly Yakovenko dismissed the plan as “dumb,” criticising the notion of an altcoin project diversifying its treasury with Bitcoin.
Hoskinson, who previously argued that Bitcoin should not be viewed as the only credible monetary blockchain, has shifted tone by suggesting that holding BTC could benefit Cardano’s treasury.
He explained that the proposed strategy would allow the Cardano Foundation to grow its reserves through the yield generated by Bitcoin holdings. The returns, according to him, could be used to buy back more ADA over time. If successful, the $100 million investment would be repeated annually for five to ten years, potentially growing the reserve to over $1 billion.
Yakovenko pushed back, suggesting on X that it makes more sense for altcoin projects to keep their reserves in low-risk assets like U.S. Treasury bills, enough to cover three years of operational costs.
He argued that individuals who want Bitcoin can simply hold it themselves, questioning the need for a team to manage such purchases. “Why pay for all these coconuts?” he wrote.
Reactions across the crypto space have varied. Jeff Park of Bitwise Invest said he didn’t expect to see a major altcoin project trading its token for Bitcoin this year.
Meanwhile, DeFi platform Alva acknowledged that although the move carries risks, it could potentially enhance Cardano’s presence in the decentralised finance ecosystem.
The discussion has sparked a broader debate about how crypto projects should manage their financial reserves. Cardano’s controversial move follows a similar proposal from the Polkadot community, which recently floated the idea of building its own Bitcoin treasury.
