The Cardano Foundation disclosed that it possesses nearly $100 million in Bitcoin, which makes up about 15% of its total assets amounting to $659 million. The foundation predominantly holds its assets in ADA but has shown increasing interest in diversifying its portfolio with Bitcoin. Rumors suggest a potential strategy involving the conversion of more ADA into Bitcoin and stablecoins to enhance its decentralized finance (DeFi) capabilities.
Key Takeaways
- Bitcoin Holdings: Approximately $98 million of the foundation’s assets are allocated to Bitcoin, which positions it as a hedge against the volatility of ADA.
- Ecosystem Enhancements: The foundation plans to utilize $22.1 million towards ecosystem growth, emphasizing adoption, education, and infrastructural expansion.
- Staking Yields: In 2024, the foundation generated significant income from staking, holding around 599.2 million ADA, which yielded 17.1 million ADA.
Hoskinson’s Proposal
In a recent proposal, Charles Hoskinson suggested converting $100 million of ADA into a blend of Bitcoin and stablecoins to boost Cardano’s DeFi framework, which currently lags behind competitors. This measure aims to establish a treasury fund to promote long-term financial growth within the ecosystem, a move seen as ambitious but potentially controversial among ADA enthusiasts.
“CARDANO ALLOCATES 15% OF $659M TO BTC”— Data gathered from the foundation’s financial report.
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