New proposals within the Polkadot ecosystem are driving the creation of strategic Bitcoin reserves.
According to the proposal, the plan involves converting 500,000 dots worth around $2 million into Threshold Bitcoin (TBTC), a wrap version of Bitcoin protected via threshold encryption.
Polka Dot Bitcoin proposal
Before the conversion to Bitcoin begins, 500,000 dots are first betted with Adot, the collateral token that produces yield.
This allows the Ministry of Finance to increase liquidity for definitions while earning returns in DOT Holding.
Additionally, 1,000 dots are set aside to cover the transaction fees associated with implementing this strategy.
From there, Polkadot Treasury gradually performs BTC conversion over the course of a year using Hydration’s rolling dollar cost averaging (DCA) feature. This method allows for daily incremental purchases and maintains a stable inflow of Bitcoin.
Once sufficient TBTC is accumulated, a portion of IT (0.005 TBTC per transaction) is added as liquidity in the hydration omnipur. The proposal states:
“This is intended as the first step towards diversifying into Bitcoin, and future proposals could include other bridging BTC assets. The TBTC aims to remain under the control of the Ministry of Finance and remain as a reserve, not a pool of payments.”
Supporters of the plan say the move will reduce exposure to market shaking and create new opportunities for defi for polka dots. The reserve is designed to maintain the value of the Treasury and ensure sufficient funding for future budgets.
Meanwhile, the Polkadot movement reflects the wider industry changes of organizations and governments that view Bitcoin as a strategic reserve asset against economic instability and currency devaluation.
Data compiled by HODL15CAPITAL shows that the top 100 corporate holders of top crypto hold more than 818,000 bitcoins in their financial resources.
Dot price struggle
Polkadot’s interest in building a Bitcoin Reserve arises as a market challenge facing its dot tokens.
According to Encryption Data, DOT prices fell 7% to $3.80 over the last 24 hours, the lowest level since October 2023.
In Bitcoin terms, the token has dropped to an all-time low of 0.00003658 BTC, losing more than 62% of its value over the past year.
Polka Dot Market Data
When reporting 5:42pm, 13th June 2025 UTCPolka Dot ranks 22nd in terms of market capitalization, and the price is under 5.61% Over the past 24 hours. Polka Dot has a market capitalization $6.08 billion 24-hour trading volume $349.58 million. Polka Dot Details›
Overview of the Crypto Market
When reporting 5:42pm, 13th June 2025 UTCCrypto market totals are evaluated by 3.29 trillion dollars There is a 24-hour volume $17.663 billion. Bitcoin’s advantage is currently underway 63.89%. Crypto Market Details›
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