Bitcoin reserves held by public and private corporations exceed 1.33 million BTC, rivaling ETFs. Willem Schroé, founder and CEO of Botanix Labs, is proposing a solution for activating Bitcoin treasuries. His initiative seeks to transform these passive assets into yield-generating instruments. Schroé highlighted this vision during a recent interview about the future of corporate balances.
Listed public companies have accumulated 1.05 million BTC. Additionally, private companies add another 279,185 BTC. These funds jointly represent 6.3% of Bitcoin’s total supply. However, the vast majority of these reserves remain inactive in treasuries. This situation is even more pronounced in spot Bitcoin ETFs, which hold 1.7 million BTC. ETFs are regulated as passive trusts under the Securities Act of 1933. Because of this, their prospectuses, like that of BlackRock’s IBIT, explicitly prohibit lending or staking the assets to generate returns.
The proposal from Botanix Labs introduces a Bitcoin sidechain. This technology allows holders to generate yield without ceding custody of their coins. The goal is to convert Bitcoin from a passive store of value into a usable financial system. Schroé, who founded Botanix after studying at Harvard, emphasizes that the fundamental desire of Bitcoiners is “more Bitcoin.” This approach seeks to meet that demand natively, allowing the blockchain to expand its utility.
Can Bitcoin be more than just ‘digital gold’ without collapsing?
The concept of yield on Bitcoin is historically a sensitive topic. Previous centralized attempts, like Celsius and BlockFi, collapsed spectacularly. Those failures were due to excessive leverage and counterparty risk. This has generated justified distrust in the industry. Nonetheless, the Botanix model presents itself as non-custodial. Users deposit BTC into smart contracts on the sidechain. In return, they receive a yield-bearing token.
The key difference lies in the origin of the yield. Unlike the failed models, yield on Botanix comes from network usage, similar to Ethereum staking. It does not depend on opaque loans to hedge funds. Botanix uses an Ethereum Virtual Machine (EVM) compatible environment. This allows gas fees and collateral to be paid directly in BTC. Currently, the protocol reports a 3.46% APR.
This development sits at the center of an old philosophical divide in Bitcoin. Purists view utility as a dangerous distraction that invites contagion. In contrast, builders like Schroé see utility as the network’s logical evolution. Schroé argues that Bitcoin has won the battle as money. The next step is a complete financial system. He views the current tension, like the split between Bitcoin Core and Knots developers, as a sign of the network’s resilience and evolution.
The rising popularity of Bitcoin-backed loans and yield shows a clear evolution. The asset is moving beyond being just a vehicle for speculation toward a functional economy. While developers debate governance, companies are searching for ways to make their Bitcoin more than a static asset. The viability of non-custodial solutions like Botanix will be key in determining if Bitcoin can build a robust financial layer on its foundation.
