StarkWare Creates Bitcoin Reserve While Expanding Starknet's Bitcoin Capabilities
StarkWare, the $8 billion company behind Ethereum Layer 2 solution Starknet, announced the creation of a "Strategic Bitcoin Reserve." The company is now holding a growing portion of its treasury in Bitcoin, joining other crypto firms that maintain Bitcoin reserves - based on Block's reporting..
StarkWare CEO and co-founder Eli Ben-Sasson explained the move to The Block, saying, "We put our money where our mouths are. I believe every blockchain company should and will hold bitcoin, and we who are working on Bitcoin day in day out should lead by example."
While the exact amount of Bitcoin being held or targeted for acquisition wasn't disclosed, the company describes itself as a "Bitcoin-standard" company. Ben-Sasson noted his long-standing belief in Bitcoin's dual purpose since 2013, valuing it both as a store of value and for its utility potential.
The company joins several other crypto-related organizations that maintain Bitcoin reserves, including:
- Strategy
- MARA
- Block
Strategy, the largest public corporate Bitcoin holder, recently announced plans to raise up to $21 billion through its "ATM Program" to purchase more Bitcoin. The company currently holds 499,096 Bitcoin valued at $41.2 billion, acquired at an average price of $66,423 per Bitcoin.
This announcement comes shortly after President Trump signed an executive order creating a U.S. Strategic Bitcoin Reserve. The federal reserve will be formed from approximately 200,000 BTC ($18 billion) already owned by the government through forfeitures in criminal and civil proceedings, minus amounts owed to victims.
In addition to the Bitcoin reserve, StarkWare revealed three new developments connecting Starknet with Bitcoin. Xverse, a Bitcoin wallet supporting various Bitcoin-based assets, will integrate with Starknet to enable the use of Bitcoin assets on the network for the first time.
The Starknet Foundation is launching "BTCFi Season," a program offering yield opportunities on Bitcoin through Starknet. This initiative aims to activate idle BTC and introduce Bitcoin holders to decentralized finance use cases on the Starknet platform.
Finally, the Braavos wallet on Starknet now supports one-click payments via the Bitcoin Lightning Network. This feature improves the speed and efficiency of Bitcoin transactions within the Starknet ecosystem, further connecting the two blockchain networks.
