Solv Protocol is preparing to launch an “onchain MicroStrategy” to bring yield-bearing Bitcoin (BTC) reserves to decentralized finance (DeFi), Solv’s co-founder Ryan Chow said in a Nov. 29 X post.
“We’re building the first-ever On-Chain MicroStrategy—a transparent, permissionless platform that transforms Bitcoin from a passive store of value into an active financial powerhouse,” Chow said.
According to Chow, Solv aims to build a strategically managed “Bitcoin reserve that not only preserves wealth but generates yield and amplifies returns.”
He didn’t specify precisely how Solv intended to achieve this goal.
Solv is a Bitcoin staking platform offering numerous yield strategies across over half a dozen blockchain networks.
It generates yield by staking BTC to Bitcoin layer-2s, including Babylon and CoreChain, as well as DeFi protocols, such as Jupiter and Ethena.
Solv currently oversees more than $3 billion in total value locked (TVL), according to DefiLlama.
Source: Solv Protocol
MicroStrategy’s Bitcoin buying spree
MicroStrategy is a business intelligence firm that became a de-facto Bitcoin hedge fund in 2020 when chairman Michael Saylor initiated an ambitious BTC buying strategy.
It has been one of the best-performing stocks in 2024, with MSTR shares up more than 450% in the year-to-date, according to data from Google Finance.
During its Aug. 1 earnings call, MicroStrategy doubled down on BTC buying by committing to a unique performance metric: Bitcoin yield.
Bitcoin yield measures the ratio of BTC holdings to outstanding shares and effectively sets BTC-per-share as a lodestar for corporate performance.
Source: MicroStrategy
MicroStrategy aims to leverage its balance sheet—mainly by borrowing or issuing shares—to accumulate Bitcoin in a way that gradually increases its BTC-per-share ratio, benefiting shareholders.
On Oct. 30, MicroStrategy tipped plans to raise $21 billion in equity and another $21 billion in debt to fund a three-year, multibillion-dollar BTC buying spree dubbed the “21/21 Plan.”
Benchmark analyst Mark Palmer predicts MicroStrategy will generate a Bitcoin yield of 12.7% in 2025.
MicroStrategy has “turned Bitcoin into more than a reserve—it’s a catalyst for explosive growth,” Chow said.
Its success has “redefined what’s possible for institutional Bitcoin reserves,” he added.
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