Cardano Eyes Bitcoin Layer 2 Shift and Converting Treasury ADA Into Bitcoin

Cardano is a proof-of-stake blockchain developed by Input Output Global (IOG) that originally sought to compete with the Ethereum and Solana ecosystems through smart contracts and decentralized governance. Its DeFi liquidity and the price of ADA have lagged for years. Adding Bitcoin assets and adjusting its treasury allocation could determine whether Cardano can broaden the use of its funds and revive developer and market demand.

On October 24, 2024, EMURGO announced an integration with BitcoinOS, using zero-knowledge proofs to connect Cardano with what was then about $1.3 trillion in Bitcoin capital. On June 12, 2025, Charles Hoskinson proposed converting $100 million worth of treasury ADA into BTC and stablecoins. By May 5, 2026, BTC had topped $81,000, while ADA remained around $0.25.