TLDR:
- Solana co-founder said blockchain projects shouldn’t hold Bitcoin on behalf of communities.
- Cardano plans to convert part of its $1.2B treasury into BTC and stables to generate yield.
- Critics argue the move could pressure ADA’s price, while others view it as strategic maturity.
- Institutional watchers are monitoring the execution and regulatory response to the diversification plan.
Cardano’s recent proposal to diversify its $1.2 billion treasury into Bitcoin and stablecoins is triggering heated reactions across crypto circles.
The initiative, pitched by Charles Hoskinson, aims to convert a portion of ADA holdings to BTC and stable assets, generating yield to later repurchase ADA. While some view it as a forward-looking treasury model, others question the need for such a shift.
The conversation took a sharper turn when Solana co-founder Anatoly Yakovenko openly criticized the move. His remarks have added fuel to a wider debate about project priorities, risk management, and long-term token value.
Solana Co-founder Challenges the Logic Behind Cardano’s Move
Solana’s Anatoly Yakovenko dismissed Cardano’s strategy as illogical. He suggests it places unnecessary responsibility on a blockchain project to manage Bitcoin for its community.
He argued that teams should maintain short-term runway funds in low-risk assets like Treasury bills rather than accumulating volatile cryptocurrencies like BTC.
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
According to Yakovenko, individual investors can manage their own Bitcoin exposure without relying on project-level asset conversions. His critique questions whether the shift serves protocol growth or merely reflects a lack of clear strategic focus.
Cardano’s plan outlines a vision of transforming its treasury into a dynamic yield-generating mechanism. As reported and echoed by community members, the project intends to convert ADA into Bitcoin and stablecoins, using earned yield to repurchase ADA.
Supporters say this approach mirrors sovereign wealth funds, aiming to build long-term stability through diversified assets. Some analysts believe this could help ADA regain footing, especially if the market views the move as a sign of strategic maturity.
Community Reactions and Price Implications for ADA and BTC
The plan has stirred mixed reactions. Influencer Aaron Dishner pointed out the irony of Cardano investing in Bitcoin, suggesting it acknowledges BTC’s higher value.
Meanwhile, others noted potential short-term pressure on ADA’s price as market participants anticipate treasury sell-offs. Technical indicators, however, hint at a possible rebound.
According to Alva, oversold conditions and positive MACD readings suggest dip-buyers could return if sentiment steadies.
The announcement has drawn interest beyond Cardano’s core community. Institutional observers are watching, as execution speed and regulatory clarity could influence whether the model gains steam.
Cardano’s DeFi ecosystem, still trailing behind Solana and Ethereum in adoption, could benefit from improved liquidity and asset diversification.
