An Insight into Bitcoin Treasuries
Corporate Bitcoin reserves are competing with exchange-traded funds (ETFs), with the founder of Botanix Labs, Willem Schroé, aiming to activate these passive assets to generate yields.
The Growing Bitcoin Reserves
Publicly traded companies are evolving into Bitcoin treasuries, holding about 1.05 million BTC, while private sectors added approximately 279,185 BTC from at least 68 companies, totaling 1.33 million BTC, which represents roughly 6.3% of the entire Bitcoin supply. The pressing question remains whether these funds will stay unutilized.
Willem Schroé emphasizes that many companies are now exploring Bitcoin lending and yield opportunities, stating, “There are a lot of people and a lot of private companies that hold Bitcoin looking into Bitcoin lending and yield opportunities.”
Translation: La primera vez que escuché sobre Bitcoin fue durante mis estudios de criptografía en Bélgica.
Schroé encountered Bitcoin during his cryptography studies and later founded Botanix Labs at Harvard Business School, where he designed a Bitcoin yield sidechain to make Bitcoin more usable.
The Challenge for ETFs
Current Bitcoin ETFs hold around 1.7 million BTC, yet their regulatory frameworks do not permit utilizing this Bitcoin for additional benefits.
“They use a custodian like Coinbase or Anchorage, so they don’t have the keys or the ownership themselves,” he noted, indicating that regulations restrict ETF holders from deploying Bitcoin actively.
Experimenting with Yield Strategies
While some corporate treasuries begin testing yield strategies, past failures of centralized platforms like Celsius and BlockFi raise concerns. Schröe remarked on the fears that many have regarding yield narratives in this volatile industry.
“The initial ideations and hacks will happen, but I think we’ve matured beyond that stage,” he said.
Towards a Financial System
With Botanix Labs, Schröe aspires to challenge the conventional view of Bitcoin as merely a digital gold, pushing for a functional financial ecosystem. Their non-custodial model allows users to stake Bitcoin into smart contracts, generating yields tied to network usage.
Closing Thoughts
The drive to revolutionize Bitcoin is a complex journey fraught with challenges and ideological divides, but it signals an innovative path towards a sustainable Bitcoin economy.
