In a new investment strategy, Tether, the stablecoin issuer, announced on Wednesday that it will begin regularly purchasing bitcoin (BTC) using a portion of its profits.
Tether to Put 15% of Realized Profits Into Bitcoin
In a new investment strategy, Tether, the stablecoin issuer, announced on Wednesday that it will begin regularly purchasing Bitcoin (BTC) using a portion of its profits. Starting this month, the company plans to allocate up to approximately 15% of its realized investment profits to acquire BTC, which will then be added to its reserve surplus. Tether intends to store the purchased BTC on its own, without the involvement of any third-party custodians.
Last week, Tether revealed that it holds $1.5 billion worth of BTC and $3.4 billion in gold, alongside its $82 billion USDT stablecoin. The company's reserves consist of 85% cash and cash-like assets, including U.S. Treasury bonds.
Paolo Ardoino, Tether's chief technology officer, emphasized the long-term value and growth potential of Bitcoin, stating that the investment would enhance their portfolio and align the company with transformative technology. The firm's decision represents a step towards addressing concerns about transparency and controversial investment practices.
