Charles Hoskinson, the founder of Cardano, recently proposed converting $100 million worth of ADA from the Cardano treasury into Bitcoin and the USDM stablecoin. He argued that the strategy could yield 5–10% annually. According to him, the returns would be used to buy back ADA, thereby replenishing the treasury, which currently holds around 1.7 billion ADA.
Hoskinson explained that if the plan succeeds, it could become an annual initiative. He envisioned building up both Bitcoin and stablecoin treasuries to $1 billion each, strengthening Cardano’s financial reserves. “This sets us up for great returns and a pretty stable floor for the ecosystem,” he stated in a viral video.
Support and Backlash from the Crypto Community
While some Cardano supporters welcomed the idea, others voiced strong objections. Among the critics was well-known crypto investor Anthony Pompliano. He accused Hoskinson of admitting that ADA cannot compete with Bitcoin long term. Pompliano claimed the move implied that Cardano’s value rests on selling ADA to acquire Bitcoin.
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Moreover, he likened Hoskinson’s plan to a “speculative attack,” a term coined by Bitcoin advocate Pierre Rochard in 2014. The strategy involves converting company assets into Bitcoin to gain from its long-term rise and promote broader adoption.
Pompliano also pointed to the massive gains made by Bitcoin-heavy treasury companies like Metaplanet. Since April 2024, Metaplanet’s stock has surged by 9,610%, rising from ¥19 ($0.13) to ¥1,845 ($12.74). He suggested these gains may have influenced Hoskinson’s decision.
More Bitcoin Advocates Join the Criticism
Other Bitcoin supporters joined the fray. Influencer Sunny Decree accused Hoskinson of following a pattern promote a project, pre-mine the token, sell it, and buy Bitcoin. He referred to Hoskinson’s earlier work with Ethereum before launching Cardano in 2017. Decree mocked ADA holders, calling them “blind.”
Likewise, Terence Michael, author of Proof Of Money, criticized Hoskinson’s plan. He argued that crypto founders often aim to sell tokens rather than build lasting value. Michael highlighted the irony of Bitcoin’s founder never selling BTC for altcoins, while Hoskinson proposes doing the reverse.
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Despite the backlash, Hoskinson remains firm. He reiterated that the plan prioritizes expanding Cardano’s DeFi and stablecoin ecosystem. To avoid impacting ADA’s price, he assured that the token sale would occur through over-the-counter (OTC) deals and time-weighted average prices (TWAPs). Hoskinson continues to focus on long-term stability and growth, even as critics question the future role of ADA within its own ecosystem.
