- Polkadot may add Bitcoin to its treasury by converting 500,000 DOT using tBTC.
- Hydration’s DCA system will automate the process to reduce risk and promote steady growth.
- Community feedback indicates support for BTC exposure, along with concerns about market timing.
Polkadot is exploring a major treasury shift by proposing to convert 500,000 DOT into tBTC over the course of a year. The proposed strategy uses Hydration’s “rolling DCA” system to automate small weekly purchases of 0.005 tBTC from a proxy account. The initiative aims to improve treasury diversification and deepen on-chain liquidity across Polkadot’s decentralized finance ecosystem.
Strategic Treasury Diversification Under Consideration
Polkadot’s proposal was introduced on its governance forums in early June by “hippiestank.” It recommends using Hydration’s rolling DCA to inject tBTC into the Hydration Omnipool gradually. Unlike traditional DCA systems, Hydration requires only topping up a proxy account, which automatically renews the schedule.
Threshold Network’s non-custodial Bitcoin bridge will power the conversion process. Each DOT will exchange at a rate close to 0.000041 tBTC based on the current suggested pricing. The startup’s design targets long-term treasury resilience by reducing reliance on volatile DOT holdings alone.
Besides enhancing diversity, it would support Polkadot’s DeFi incentives by expanding liquidity access and bridging BTC into the ecosystem. The proposal remains under discussion and has not yet moved to a community vote.
Community Reaction Remains Divided
While some support the idea, others raise concerns about risk and timing. A key backer stated that DOT has lost about 60% against BTC since January 2025. They noted that a DCA plan earlier could have generated nearly $1.5 million in treasury gains.
“Think like MicroStrategy,” the user added, referring to firms now holding Bitcoin as a long-term strategic asset. This aligns Polkadot with institutional trends, including those of SpaceX and several central banks that have adopted BTC as a reserve. Another forum member warned that despite DOT’s dip, BTC’s volatility still poses risks to treasury security. Some contributors propose reducing the amount converted to 50,000 DOT as a pilot before scaling it up.
Related: SEC Accepts Polkadot ETF While Canary Files ETF for PENGU
Polkadot Bets on Bitcoin Reserves to Stay Competitive
With Bitcoin entering the balance sheets of global institutions, decentralized networks are doing the same. The Polkadot plan emphasizes the protocol’s desire to stay competitive in a fast-paced financial environment.
According to CoinMarketCap, DOT dropped 5.88% in the last 24 hours, trading at $3.81 on June 13. The market capitalization of DOT is maintained at $6.05 billion. In just 24 hours, $321.19 million was traded in volume, demonstrating active trading and a strong commitment to the trade despite overall market weakness.
