$ADA
Cardano plans to diversify $100 million in ADA into Bitcoin and stablecoins to stabilize its decentralized treasury fund.
Profits from these investments will be used to buy back ADA, supporting both its value and market liquidity over time.
The strategy mirrors sovereign wealth models and aims to strengthen ADA’s position through steady, long-term reinvestment.
Charles Hoskinson, the founder of Cardano, has outlined a proposal to enhance the blockchain’s decentralized Sovereign Wealth Fund. Speaking in an 18-minute podcast shared on X, Hoskinson revealed that the Cardano treasury could allocate a portion of its holdings to Bitcoin and stablecoins as part of a diversification strategy.
According to Hoskinson, the initiative may involve converting around $100 million worth of ADA into a mix of stablecoins and Bitcoin. He stated that this move aims to reduce financial risk, generate sustainable returns, and create a long-term system to support the Cardano ecosystem. The income generated would be reinvested to buy back ADA tokens periodically.