Advocates say a Bitcoin reserve could unlock new DeFi opportunities and reduce economic risks for Polkadot.<\/p>\n 2 min read<\/span><\/p>\n Updated:<\/span> Jun. 13, 2025 at 5:42 pm UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n A new proposal<\/a> within the Polkadot<\/a> ecosystem is pushing for the creation of a Strategic Bitcoin<\/a> Reserve.<\/p>\n According to the proposal, the plan involves converting 500,000 DOT, valued at around $2 million, into Threshold Bitcoin (tBTC)<\/a>, a wrapped version of Bitcoin secured through threshold cryptography, which ensures decentralization and non-custodial management.<\/p>\n Before conversion to Bitcoin begins, the 500,000 DOT will first be staked in aDOT, a yield-generating collateral token.<\/p>\n This will allow the treasury to earn returns on its DOT holdings while increasing liquidity for DeFi borrowing.<\/p>\n Additionally, 1,000 DOT will be set aside to cover transaction fees involved in executing this strategy.<\/p>\n From there, the Polkadot treasury would execute the BTC conversion gradually over a year, using Hydration\u2019s rolling dollar-cost averaging (DCA) feature. This method enables daily, incremental purchases to maintain a steady Bitcoin inflow.<\/p>\n Once enough tBTC is accumulated, portions of it (0.005 tBTC per transaction) would be added as liquidity to the Hydration Omnipool. The proposal stated:<\/p>\n \u201cThis is intended as a first step towards diversification into Bitcoin where future proposals could include other bridged BTC assets. The tBTC stays under the control of the Treasury and is intended to be maintained as a reserve, not a pool for payments.\u201d<\/p>\n<\/blockquote>\n Supporters of the plan say the move would reduce exposure to market swings and create new opportunities for DeFi on Polkadot<\/a>. The reserve is also designed to preserve the treasury\u2019s value and ensure sufficient funds for future budgets.<\/p>\n Meanwhile, Polkadot\u2019s move mirrors a broader industry shift of organizations and governments viewing Bitcoin as a strategic reserve asset to hedge against economic instability and currency devaluation.<\/p>\n Data<\/a> compiled by Hodl15Capital shows that the top 100 corporate holders of the top crypto hold more than 818,000 Bitcoin in their coffers.<\/p>\n Polkadot\u2019s interest in building a Bitcoin reserve comes as its DOT token faces market challenges.<\/p>\n According to CryptoSlate\u2019s<\/em> data, DOT\u2019s price has dropped 7% in the last 24 hours to $3.80, its lowest level since October 2023.<\/p>\n In Bitcoin terms, the token has fallen to an all-time low of 0.00003658 BTC, losing over 62% of its value in the past year.<\/p>\n At the time of press 5:42 pm UTC on Jun. 13, 2025<\/span>, Polkadot<\/a> is ranked #22 by market cap and the price is down 5.61%<\/span><\/strong> over the past 24 hours. Polkadot has a market capitalization of $6.08 billion<\/strong> with a 24-hour trading volume of $349.58 million<\/strong>. Learn more about Polkadot \u203a<\/a><\/p>\n At the time of press 5:42 pm UTC on Jun. 13, 2025<\/span>, the total crypto market is valued at at $3.29 trillion<\/strong> with a 24-hour volume of $176.63 billion<\/strong>. Bitcoin dominance is currently at 63.89%<\/strong>. Learn more about the crypto market \u203a<\/a><\/p>\n<\/div>\n<\/div>\n Disclaimer:<\/strong> CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.<\/em><\/p>\n![\"bitcoins](\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/imgresize\/timthumb.php?src=https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/06\/polkadot-bitcoin-treasury.jpg&w=70&h=37&q=75\")
Polkadot seeks stability with $2M Bitcoin reserve strategy amid DOT downturn<\/span> Oluwapelumi Adejumo \u00b7<\/span> 2 months ago<\/span> \u00b7 2 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n![](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/oluwapelumi-adejumo-author-150x150.jpg\")
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<\/a><\/p>\n<\/div>\nBitcoins Polkadot\u2019s Bitcoin proposal<\/h2>\n
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