As stated by Tether, “By incorporating Bitcoin into its investment strategy, Tether aims to capitalize on the digital asset's potential growth, while leveraging its position as a trusted and reliable financial infrastructure provider.”
Stablecoin issuer Tether (USDT) announced its plans to strengthen its reserves by using a fraction of its realized profits to purchase Bitcoin (BTC).
Tether#Bitcoin
— Tether (@Tether_to) May 17, 2023
Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin. These Bitcoin shall be considered on top of the minimum reserves assets that 100% back tether tokens.
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In the official blog post, Tether’s CTO Paolo Ardoino praised Bitcoin’s potential as an investment product. According to him, Bitcoin’s limited supply, extensive adoption, and growth potential make it the ideal token to enhance the performance of Tether’s portfolio. He added,
“The decision to invest in Bitcoin, the world's first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential.”
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Therefore, starting May 2023, Tether intends to assign 15% of its net profits to buying Bitcoin. Moreover, the firm's Q1 2023 Assurance Report revealed that Tether held $1.5B in Bitcoin as of March 2023.
Tether stressed that it will store the purchased BTC assets in private wallets instead of employing a third-party custodian to safeguard its Bitcoin holdings. Furthermore, the issuer of the stablecoin with the largest market cap also plans to invest in communication technologies, energy, and Bitcoin mining.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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