Aave tokenholders consider Bitcoin mining venture for $99,598 profit

Aave's (CRYPTO:AAVE) tokenholder community is currently evaluating a proposal to enter the Bitcoin (CRYPTO:BTC) mining sector as a means to enhance revenue and promote the adoption of its GHO stablecoin.  

The proposal, introduced on January 15 and pending a vote from tokenholders, was crafted by Blockware Solutions, which specialises in Bitcoin mining-as-a-service.  

According to the proposal, Aave would partner with Blockware to manage Bitcoin mining operations, aiming for a projected net annualised return of 33.03% for its treasury.  

Blockware emphasised that engaging in Bitcoin mining could not only improve Aave’s financial standing but also allow for capital gains tax depreciation strategies.  

Furthermore, the proposal outlines plans to integrate Aave’s GHO stablecoin into the Bitcoin network, enabling miners and retail customers to purchase mining equipment using GHO.  

However, discussions within Aave’s governance forum reveal scepticism among some tokenholders regarding the profitability and associated costs of Bitcoin mining.  

Aave operates as a decentralised finance (DeFi) lending protocol, allowing users to borrow cryptocurrencies by providing other assets as collateral.  

In July 2024, Aave launched its GHO stablecoin on the Arbitrum (CRYPTO:ARB) network but has seen limited adoption since then.  

As of January 16, GHO's market cap stood at approximately $166 million, significantly lower than Tether's USDT (CRYPTO:USDT), which boasts nearly $140 billion in market capitalisation.  

In the broader context of Bitcoin mining, miners are ramping up production amid BTC's strong performance despite challenges posed by the recent halving event that reduced rewards.  

Blockware asserts that integrating GHO into the Bitcoin network would position it as a "Bitcoin-powered stablecoin with real-world value."  

At the time of reporting, the Aave (AAVE) price was $309.00 and the Bitcoin (BTC) price was $99,533.94.