#CardanoDebate Cardano Eyes Treasury Diversification with Bitcoin and ADA Buybacks

Cardano founder Charles Hoskinson has proposed a strategy to diversify the blockchain's $100 million treasury by converting a portion of ADA into Bitcoin and stablecoins. The move aims to reduce financial risk, generate sustainable returns, and stabilize the treasury through long-term reinvestment.

Inspired by sovereign wealth fund models like Norway’s, Cardano would use profits from these investments to periodically buy back ADA—boosting its value and liquidity. Hoskinson emphasized that compounding returns over 5–10 years could significantly strengthen the treasury and ADA's position in the global financial ecosystem.

While the proposal has community support, some have suggested alternative investment strategies, such as Private Equity or Green Energy Funds, which might offer higher returns. Still, Hoskinson stressed diversification as key to preserving purchasing power and expanding ADA adoption over time.