Unlocking Bitcoin Yield: How Corporate Treasuries Can Revolutionize Holdings

Corporate Bitcoin holdings are rapidly growing, now rivaling exchange-traded funds (ETFs). However, many of these significant reserves remain dormant. Willem Schroé, founder of Botanix Labs, believes this represents a missed opportunity. He argues that Bitcoin treasuries can actively generate more Bitcoin, transforming passive assets into dynamic, yield-producing capital. This vision reshapes how companies view their digital gold.

Bitcoin Treasuries: From Dormant to Dynamic

Publicly listed companies increasingly rebrand as Bitcoin treasuries. Their holdings now near 1.05 million BTC. Private companies have also added 279,185 BTC across at least 68 firms. Consequently, the total reaches 1.33 million BTC, about 6.3% of Bitcoin’s supply. The crucial question emerges: will these reserves sit idle or be put to work?

Schroé predicts many won’t remain dormant. He told Crypto News Insights, “There are a lot of people and a lot of private companies that hold Bitcoin looking into Bitcoin lending and yield opportunities.” Over 273 public and private corporations have reported Bitcoin investments. (Source: BitcoinTreasuries.NET)

Spot Bitcoin ETFs hold even more Bitcoin, almost 1.7 million BTC. Nevertheless, their regulatory design leaves no room to put that Bitcoin to work. “They use a custodian like Coinbase or Anchorage, so they don’t have the keys or the ownership themselves,” Schroé explained. “Step two is regulation — if you’re an ETF holder, you’re not allowed to do that.”

This limitation stems from how spot Bitcoin ETFs structure themselves under US securities law. They register as passive commodity trusts. They list under the Exchange Act of 1934. This framework allows them to track Bitcoin’s price but not actively deploy it. Their filings prohibit lending, staking, or rehypothecation of assets. This maintains compliance as passive vehicles.

Each spot Bitcoin ETF prospectus clarifies this. BlackRock’s iShares Bitcoin Trust filing, the largest with 804,944 BTC, states: “The Trust, the Sponsor and the Trust’s service providers will not loan, pledge or rehypothecate the Trust’s assets, nor will the Trust’s assets serve as collateral for any loan or similar arrangement, except with respect to securing the repayment of Trade Credits.”

The Vision for Bitcoin Yield Generation

Willem Schroé’s journey into Bitcoin began during his cryptography studies in Belgium. There, he researched authenticated encryption alongside early Bitcoin contributors. Later, at Harvard Business School, he founded Botanix Labs. This Bitcoin yield sidechain aims to transform Bitcoin from a passive store of value into a usable Bitcoin financial system. Schroé articulates his core belief: “The single thing every Bitcoiner wants — once you understand the full Bitcoin vision — is more Bitcoin.”

Some digital asset treasuries already experiment with yield strategies. For example, on Solana, DeFi Development Corp (DFDV) stakes its holdings. It runs validators and participates in decentralized finance (DeFi) protocols. This expands its token balance over time. Similar approaches emerge across other networks. Bitcoin-native initiatives like Botanix aim to replicate that model for Bitcoin. They allow holders to earn Bitcoin yield while retaining control of their coins.

However, yield on Bitcoin remains a sensitive subject. Previous attempts by centralized lenders like Celsius and BlockFi collapsed. They suffered from excessive leverage or counterparty risk. That history makes many in the industry wary of yield narratives. This is especially true when they blur the line between financial innovation and speculative rehypothecation. “That’s the nature of any product’s growth,” Schroé noted. “The initial ideations and hacks will happen, but I think we’ve matured beyond that stage.”

He adds, “Protocols like Aave and Dolomite now have billions of dollars and a four- to five-year track record. They’ve weathered those cycles and the market is becoming more secure.” This suggests a more robust environment for responsible yield generation.

Botanix Labs: Building a Non-Custodial Bitcoin Financial System

Schroé envisions Bitcoin as more than digital gold. With Botanix Labs, he builds a sidechain-based system. This system lets users earn yield on their Bitcoin without surrendering custody. The core idea rethinks where yield originates. In failed models like Celsius, users deposited Bitcoin into centralized platforms. These platforms took control of funds, lent them out, and promised high returns. The system relied on off-chain leverage and opaque lending. It worked until the market collapsed.

Botanix operates as a non-custodial protocol. Users stake their Bitcoin into smart contracts on the Botanix sidechain. They receive a yield-bearing BTC token in return. This distinction extends to the source of yield. Botanix ties yield to network usage itself. This is much like Ethereum’s staking rewards, where blockchain transactions fund returns. (Botanix currently offers a 3.46% annual percentage rate (APR) on 100 staked BTC across 13,144 wallets. Source: Botanix)

This model still carries risks. These are common to emerging DeFi protocols. They include exploits or bugs in smart contracts and bridges. “I think Bitcoin has won as the money,” Schroé stated. “The next step is a financial system, a medium of exchange.” Botanix uses an Ethereum Virtual Machine-compatible environment. Gas fees and collateral are paid in BTC. This enables lending, borrowing, and liquidity provision directly on a Bitcoin-linked chain. It’s a bold step towards a comprehensive Bitcoin financial system.

Navigating Risks and the Future of Corporate Bitcoin Holdings

The rising popularity of Bitcoin-backed loans and yield demonstrates an evolution. The world’s first blockchain-based cryptocurrency moves beyond storage and speculation. It transforms into a functioning economy. For Schroé, the goal isn’t to mimic traditional finance strategies. Instead, it is to build a Bitcoin-native financial system. This ambition sits at the center of one of Bitcoin’s oldest philosophical divides. Builders like Schroé see utility as the network’s logical next evolution. Bitcoin purists view it as a distraction. They worry it invites the same contagion that broke DeFi and centralized lenders in 2022.

Schroé believes this tension signals Bitcoin’s resilience. He pointed to the recent split between Bitcoin Core and Knots developers. They clashed over filtering policies and governance. “I think Bitcoin Core should still listen to the market, should still listen to Bitcoiners,” he said. “There’s no such thing as Bitcoin Core being fully in control.”

This divide captures Bitcoin’s ongoing evolution. It applies to both its code and its applications. While developers debate governance and purity, companies and builders seek ways. They aim to make corporate Bitcoin holdings more than a static store of value. This proactive approach ensures Bitcoin’s continued relevance and growth in the global economy.