Cardano Foundation Discloses $659 Million Treasury

Cardano Foundation Discloses $659 Million Treasury Amid Market Surge and Competitive Pressures

The Cardano Foundation has unveiled the details of its $659.1 million treasury in its second annual Financial Insights Report, marking a significant advancement in transparency. For the first time, the Foundation’s balance sheet and expenditure strategy have been published on-chain, confirming that its assets are diversified across ADA, bitcoin, and fiat reserves.

Treasury Composition and Financial Strategy

As of December 31, 2024, the Foundation held 76.7% of its assets in ADA, 15% in bitcoin, and 8.3% in cash and equivalents. The report reveals that the Foundation’s 599.2 million ADA stake generated 17.1 million ADA in rewards over the past year, representing a 2.7% return. These rewards are now utilized to finance daily operations without the need to liquidate core holdings.

Chief Executive Frederik Gregaard underscored the importance of transparency in his foreword, stating that “sharing not only our achievements but also how we allocate resources is fundamental to building trust and ensuring long-term success.” In 2024, the Foundation expended $29.2 million, with $22.1 million allocated to its three strategic pillars: adoption, operational resilience, and education. The remaining $7.1 million covered legal, governance, finance, and infrastructure overheads.

More than half of the budget—$15 million—was dedicated to adoption initiatives. These efforts supported enterprise pilots including a NASA tracking solution, a ballistic-identification system, the soft launch of the Reeve on-chain accounting tool, and partnerships with prominent organizations such as Barcelona FC, Amnesty International, Swisscom, and the United Nations Development Programme. Operational resilience received $3.8 million, funding the launch of the open-source Cardano.org stack, network congestion monitors, and early development on the Ouroboros Genesis upgrade and the Chang hard fork era. Education programs were allocated $3.3 million, supporting the Cardano Blockchain Certified Associate (CBCA) exam, regulatory engagement with the Bank for International Settlements, and a Cardano Summit in Dubai attended by 1,000 participants.

Commitment to Transparency and Market Context

In a further move to enhance transparency, the Foundation migrated its entire 2024 general ledger to Reeve, a bespoke reporting tool that records, verifies, and shares financial data directly on the Cardano blockchain. This innovation allows stakeholders to audit immutable entries without reliance on external gatekeepers. Gregaard emphasized that this step “reaffirms our dedication to financial responsibility and strategic investment,” inviting the community to verify every figure.

This disclosure arrives amid heightened market activity and intensifying competitive pressures. ADA has rallied 23% recently, including a 3.52% gain in the past 24 hours, pushing market indicators toward overbought territory and prompting some investors to reassess their positions. Cardano’s total value locked (TVL) has surged to $313.75 million, reflecting growing interest from long-term investors seeking passive income. However, the sharp price increase—partly driven by Bitcoin’s performance—may encounter selling pressure, potentially limiting further recovery.

The broader cryptocurrency landscape is becoming increasingly competitive. BlockDAG’s $321 million presale and Solana’s potential to surpass Ethereum in market capitalization present new challenges for Cardano. Despite these pressures, the Foundation’s treasury—still dominated by its original endowment of 648 million ADA and 8,258 BTC—faces no immediate liquidity concerns. Its delegation policy continues to support mission-critical pools, fostering an ecosystem where staking rewards fund ongoing development.

At the time of reporting, ADA traded at $0.7277. The Foundation’s commitment to on-chain financial disclosure aims to satisfy both technically minded auditors and mainstream readers, setting a new standard for transparency within the blockchain sector.