Solana Labs Co-Founder Calls Cardano’s BTC Treasury Strategy “Dumb” Approach
Solana Labs co-founder Anatoly Yakovenko has criticized Cardano founder Charles Hoskinson’s proposal to convert portions of the Cardano treasury into Bitcoin and stablecoins. He called the strategy “so dumb” and questioned why projects would hold on behalf of token holders.
Yakovenko’s response came after Hoskinson outlined plans to convert 5-10% of Cardano’s $1.2 billion treasury into alternative assets to generate yield and create what he described as crypto’s first sovereign wealth fund. Hoskinson’s video detailed a multi-year strategy where converted assets would generate annual yield to repurchase ADA tokens and replenish the treasury over time.
The Cardano founder suggested this approach could grow into a billion-dollar-plus stablecoin and Bitcoin treasury within five to ten years. He also added that this would create what he characterized as a stable floor for the ecosystem similar to traditional sovereign wealth funds.
Yakovenko’s critique focused on the fundamental logic of cryptocurrency projects holding Bitcoin rather than allowing investors to make their own allocation decisions. “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,” the Solana co-founder stated.
The Solana executive argued that projects should maintain 18-36 months of operational runway in short-term Treasury bills but avoid overall asset diversification strategies. Community reaction to Hoskinson’s proposal has been mixed, with some members questioning the strategic rationale behind the treasury conversion.
Another X user mentioned that Hoskinson’s strategy highlights Bitcoin’s value proposition is superior to the 11th market cap ADA. The criticism touches on overall questions about treasury management in cryptocurrency projects. Traditional corporate finance typically separates operational funding from investment activities, while Hoskinson’s proposal blurs these boundaries by treating the treasury as both operational reserve and investment vehicle.