Charles Hoskinson is making headlines with plans to convert $100 million worth of ADA Treasury into Bitcoin and Cardano-based Stablecoins. His aim is to strengthen the existence of Bitcoin in Decentralized Finance (DEFI), a vision he believes to be timely and critical.
As ADA liquidity shifts towards BTC and Cardano-native stubcoins like USDM and USDA, Hoskinson is betting on the future where Bitcoin plays a major role in cross-chain outages. Dismissing critics who fear price disruptions, I believe this strategy will strengthen the long-term utility and market alignment between Cardano and Bitcoin.
Plans to strengthen Cardano’s Bitcoin Defi at the Ministry of Finance
Hoskinson’s proposal is to establish a dedicated liquidity fund using a portion of Cardano’s 1.7 billion ADA Treasury, and is now closer to reality. Upgrades such as TapRoot allow Bitcoin to support more complex smart contract features.
In an interview hosted by Bitcoin Magazine, Hoskinson considers Cardano’s extended UTXO model to perfect complement to Bitcoin’s evolving technology base. Cardano can provide Defi functionality without compromising the exposure of your Bitcoin holder. This model allows users to trade fees and rewards at BTC while participating in the Cardano ecosystem.
Related: Hoskinson: Apple, Microsoft Crypto entry could be key to $250,000 Bitcoin
Furthermore, institutional interests continue to build momentum. Financial giants such as BlackRock now hold hundreds of thousands of BTC. This growing institutional foothold, coupled with the innovations in Bitcoin Bridging, could further drive the adoption of BTC.
Related: 2025 Crypto’s Year? Hoskinson says yes after a $710 million market decline and rebound
Hoskinson believes Bitcoin could rise to $250,000-$500,000 within two years, and ultimately reach $1 million by 2030.
Polka Dot follows suits with its own “strategic pivot” to Bitcoin
In parallel development, the Polkadot community is currently investigating similar strategic pivots. The new proposal suggests gradually converting over 500,000 dots to TBTC via Hydration’s automated DCA platform.
This move is not just about price speculation. It is also designed to deepen the fluidity in the chain and enhance the resistance of polka dots. The initiative uses distributed BTC bridges in threshold networks to highlight security and indecent storage.
Importantly, this is when DOT comes at a low performance moment against BTC. If Polkadot launched its DCA to BTC earlier this year, it could have been locked in profits of more than $1.5 million. By adopting Bitcoin strategically, Polkadot aims to diversify the Treasury assets and hedge against further unperformance.
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