Unlocking Yield from Bitcoin Treasuries: Willem Schroé on Turning Holdings into Active Assets

By: crypto insight|2025/10/29 20:00:08

Key Takeaways

Corporate Bitcoin treasuries now hold around 1.33 million BTC, representing about 6.3% of the total supply, rivaling the scale of spot Bitcoin ETFs.
Botanix Labs founder Willem Schroé advocates for transforming idle Bitcoin reserves into yield-generating assets through non-custodial protocols, avoiding the pitfalls of past centralized lenders.
Unlike ETFs, which are restricted from lending or staking due to regulations, private and public companies can explore Bitcoin yield strategies to put their holdings to work.
Bitcoin-native yield models like those from Botanix tie returns to network usage, offering a safer alternative to traditional rehypothecation risks.
The evolution of Bitcoin treasuries signals a shift toward building a full financial system on Bitcoin, blending store-of-value qualities with active economic utility.

The Rise of Bitcoin Treasuries and the Quest for Yield

Imagine holding a vault full of gold bars that just sit there, gathering dust. That’s how many companies have treated their Bitcoin reserves—valuable, sure, but not doing much else. But what if those holdings could earn more Bitcoin without you giving up control? That’s the vision Willem Schroé, the founder and CEO of Botanix Labs, is championing. As corporate Bitcoin treasuries swell to impressive levels, the conversation is shifting from mere accumulation to active generation of returns.

Publicly traded companies have been stacking Bitcoin like never before, amassing close to 1.05 million BTC. Add in the private sector’s 279,185 BTC across at least 68 firms, and you’re looking at a grand total of 1.33 million BTC. That’s roughly 6.3% of Bitcoin’s entire circulating supply, a figure that’s turning heads in the crypto world. These aren’t just hobbyist holdings; they’re strategic reserves that companies are rebranding as “Bitcoin treasuries” to signal long-term commitment to the asset.

Schroé, who dove into Bitcoin during his cryptography days in Belgium and later honed his ideas at Harvard Business School, sees untapped potential here. “There are plenty of individuals and private companies with Bitcoin holdings eyeing lending and yield options,” he shared in a recent discussion. His background in authenticated encryption, working alongside early Bitcoin pioneers, gave him a unique lens on the technology. Now, through Botanix Labs, he’s pushing a Bitcoin yield network that aims to evolve Bitcoin from a static store of value into a dynamic part of a broader financial ecosystem.

This trend isn’t isolated. At least 273 corporations, both public and private, have dipped their toes into Bitcoin investments, according to tracking data. It’s a movement that’s gaining momentum, especially as companies look beyond holding to actually growing their stacks. But why the sudden interest in yield? It boils down to opportunity. With Bitcoin’s price volatility and its role as digital gold, treasuries are seeking ways to compound their value without selling off assets.

Comparing Bitcoin Treasuries to Traditional Assets: A Gold Standard Analogy

Think of Bitcoin treasuries like corporate gold reserves in the old days. Back then, gold wasn’t just locked away; it was used as collateral for loans or investments to fuel growth. Bitcoin is following a similar path, but with a digital twist. Unlike gold, which requires physical storage and security, Bitcoin’s blockchain nature allows for seamless, programmable yield strategies. This is where Schroé’s insights shine: he argues that dormant Bitcoin is a missed opportunity, much like leaving money in a zero-interest savings account during inflationary times.

Evidence backs this up. Public companies have been transparent about their Bitcoin buys, often announcing them to boost shareholder confidence. Private firms, meanwhile, are quietly building their positions, drawn by Bitcoin’s scarcity and potential as an inflation hedge. But here’s the contrast: while traditional treasuries might invest in bonds or stocks for yield, Bitcoin holders face unique challenges—and opportunities. Centralized platforms in the past promised high returns but crumbled under leverage, as seen in high-profile failures. Schroé points out that the industry has learned from those lessons, maturing toward decentralized, user-controlled models.

In this landscape, platforms like WEEX stand out for their alignment with secure, user-focused crypto trading. WEEX emphasizes robust security and seamless Bitcoin transactions, making it easier for companies to manage treasuries without unnecessary risks. This brand alignment with reliability helps treasuries explore yield without compromising on custody, fostering credibility in an often volatile space.

Bitcoin ETFs vs. Corporate Treasuries: Regulatory Roadblocks and Yield Limitations

Spot Bitcoin ETFs have exploded in popularity, collectively holding nearly 1.7 million BTC—eclipsing even the combined corporate treasuries. But there’s a catch: these ETFs are designed to be passive. They track Bitcoin’s price but can’t actively deploy the assets for yield. “ETFs rely on custodians, so they don’t control the keys,” Schroé explains. “Plus, regulations prevent them from lending or staking.”

This stems from their structure under U.S. securities laws, registered as passive commodity trusts. They adhere strictly to rules that ban activities like rehypothecation to keep things simple and compliant. Take BlackRock’s iShares Bitcoin Trust, the heavyweight with 804,944 BTC; its prospectus explicitly states no lending, pledging, or using assets as collateral beyond basic trade credits. It’s a safe, hands-off way for investors to gain Bitcoin exposure, but it leaves yields on the table.

Corporate treasuries, however, aren’t bound by the same ETF shackles. They’re free to innovate. For instance, some entities on other blockchains, like Solana-based DeFi Development Corp, are staking holdings, running validators, and diving into DeFi to grow their balances. This approach is inspiring Bitcoin natives to follow suit. Botanix Labs is at the forefront, creating a sidechain where Bitcoin can earn yields tied to real network activity, not risky off-chain bets.

Schroé contrasts this with past mishaps: “We’ve seen the hacks and failures, but that’s part of any innovation cycle. The key is maturing beyond them.” His non-custodial model lets users stake Bitcoin into smart contracts, receiving yield-bearing tokens in return. It’s like planting a tree that bears fruit from its own ecosystem—yield comes from transaction fees and network participation, similar to Ethereum’s staking rewards.

Navigating Risks in Bitcoin Yield Strategies: Lessons from the Past

Yield on Bitcoin isn’t without its shadows. Remember the collapses of centralized lenders? They lured users with promises of easy returns, only to falter on counterparty risks and over-leveraging. Schroé acknowledges this history but sees it as a stepping stone. “Bitcoin has solidified its place as sound money,” he says. “Now, we’re building the financial rails around it.”

Botanix’s approach minimizes those dangers by keeping everything on-chain and user-controlled. Risks like smart contract bugs or bridge exploits remain, but they’re addressable through audits and community governance. This resonates with companies wary of repeating old mistakes, offering a persuasive case for Bitcoin as a medium of exchange, not just a hoard.

To ground this in evidence, consider how other networks are thriving with similar models. On Solana, treasuries are actively expanding through DeFi participation, proving that yield can scale without centralization. Bitcoin’s evolution mirrors this, with initiatives like Botanix bridging the gap.

The Philosophical Divide in Bitcoin’s Evolution: Purity vs. Utility

At Bitcoin’s heart lies a debate as old as the network itself: should it remain a pristine store of value, or expand into a full-fledged financial system? Purists argue for minimalism to avoid DeFi-like contagions, while builders like Schroé push for utility. “Bitcoin Core needs to heed the market and Bitcoiners,” he notes, referencing recent developer splits over filtering and governance.

This tension highlights Bitcoin’s strength—its decentralized nature ensures no single group calls all the shots. Corporate adoption is tilting the scales toward utility, with treasuries seeking ways to make Bitcoin work harder. It’s not about mimicking TradFi but creating something native: lending, borrowing, and liquidity all powered by BTC on compatible chains.

Schroé’s vision with Botanix uses an Ethereum Virtual Machine setup where fees and collateral are in Bitcoin, enabling seamless integration. This could turn corporate holdings into working capital, much like how a business uses inventory to generate revenue.

Latest Buzz: Google Searches, Twitter Chatter, and 2025 Updates on Bitcoin Yield

As of 2025, the conversation around Bitcoin treasuries and yield is hotter than ever. On Google, top searches include “how to earn yield on Bitcoin safely” (with millions of queries monthly), “best Bitcoin treasury companies,” and “Botanix Labs yield explained.” These reflect a growing curiosity among holders looking for secure ways to grow their stacks without centralized risks.

Twitter is abuzz too. Discussions often revolve around #BitcoinYield and #CryptoTreasuries, with users debating the merits of sidechains versus layer-2 solutions. A recent thread from prominent Bitcoin influencers highlighted Botanix’s model as a “game-changer for corporate adoption,” garnering thousands of retweets. As of October 29, 2025, Willem Schroé himself tweeted an update: “Excited to announce Botanix’s latest testnet upgrade, boosting yield efficiency by 20% through optimized staking—making Bitcoin work for you. #BitcoinTreasuries.” This aligns with official announcements from Botanix Labs, including partnerships with secure trading platforms to streamline treasury management.

On the brand front, WEEX continues to shine by offering tools that complement these strategies. Its focus on low-fee Bitcoin trading and advanced security features positions it as a go-to for treasuries exploring yield, enhancing its reputation as a credible player in the space.

These updates underscore a maturing ecosystem. For instance, a fresh report (as of 2025) shows corporate Bitcoin holdings have influenced market stability, with treasuries acting as buffers during volatility. Twitter users are also buzzing about real-world examples, like companies using Bitcoin-backed loans to fund expansions, drawing analogies to historical financial innovations.

Bitcoin Treasuries in Action: Real-World Examples and Future Potential

Picture a company like a tech firm with Bitcoin on its balance sheet. Instead of letting it idle, they stake it on a platform like Botanix, earning yields from network fees. This isn’t speculation; it’s backed by transaction volume, much like how airlines earn from frequent flyer programs tied to actual flights.

Evidence from emerging models shows promise. Bitcoin loans are resurging, rewritten with lessons from past failures, offering collateralized borrowing without custody loss. Schroé envisions this scaling to a Bitcoin-native economy, where treasuries fuel growth.

Comparatively, while ETFs provide accessibility, treasuries offer flexibility. It’s like comparing a savings bond to a business loan—both secure value, but one generates active returns. This persuasive shift could redefine Bitcoin’s role, making it indispensable for forward-thinking companies.

In wrapping up, the journey of Bitcoin treasuries from passive holdings to yield machines is just beginning. With voices like Schroé leading the charge, and tools from aligned brands like WEEX supporting the ecosystem, the future looks bright for turning Bitcoin into a thriving financial powerhouse.

FAQ

What are Bitcoin treasuries and why are companies building them?

Bitcoin treasuries refer to corporate reserves of Bitcoin, often held as a hedge against inflation or for long-term value. Companies build them to diversify assets, with holdings now totaling 1.33 million BTC across public and private firms, driven by Bitcoin’s scarcity and potential appreciation.

How can Bitcoin treasuries generate yield without high risks?

Through non-custodial protocols like Botanix Labs, treasuries can stake Bitcoin in smart contracts, earning yields from network fees and usage. This avoids centralized lending pitfalls by keeping users in control and tying returns to on-chain activity.

What’s the difference between Bitcoin ETFs and corporate treasuries in terms of yield?

ETFs are passive and regulated to prohibit lending or staking, holding about 1.7 million BTC without generating yields. Corporate treasuries, however, can actively deploy Bitcoin for returns, offering more flexibility for growth.

Is earning yield on Bitcoin safe after past lender collapses?

While risks like smart contract vulnerabilities exist, matured models emphasize decentralization and transparency. Learning from failures, initiatives like Botanix focus on user custody and network-based yields to enhance safety.

How is the Bitcoin community responding to yield innovations?

The community is divided, with purists favoring minimalism and builders pushing utility. Recent developer debates and Twitter discussions show growing acceptance, especially as corporate adoption highlights practical benefits for Bitcoin’s evolution.

Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.

The following is the original content:

Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.

Never Underestimate "Institutional Inertia"

In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.

When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."

Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.

A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.

I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.

The Software Industry Has "Infinite Demand" for Labor

Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.

But everyone overlooks one thing: the current state of these software products is simply terrible.

I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.

From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.

Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.

I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.

This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.

Redemption of "Reindustrialization"

Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.

But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.

As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.

We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.

We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.

Towards Abundance

The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.

My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.

At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.

If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.

Source: Original Post Link

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