Tether USDt

United

Bitcoin

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	<p>Leading stablecoin issuer, Tether, plans to bolster its reserves by investing in Bitcoin, pivoting away from United States government debt securities.</p>
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<p lang="en" dir="ltr">Without much fanfare, Tether has started reinvesting some of their profits/excess reserves into Bitcoin. How much have they acquired in Q1, you ask? Just around 52,670. <a href="https://t.co/NI3N0oICOz" rel="nofollow" target="_blank">pic.twitter.com/NI3N0oICOz</a></p>
<p>&mdash; girevik (@girevik_) <a href="https://twitter.com/girevik_/status/1656358415566794769?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 10, 2023</a></p></blockquote>
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<p>The company announced on May 17th that it aims to allocate up to 15% of its monthly net realized operating profits towards <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> purchases.</p>
<p>This development follows closely after Tether&#8217;s recent quarterly financial report, which disclosed a net profit of $1.5 billion.</p>
<p>Tether&#8217;s <a href="https://crypto.ro/en/cryptocurrencies/tether/">USDT</a> saw its market capitalization surge from $66 billion to over $82 billion in the first quarter.</p>
<p>Meanwhile, bank deposits shrank by over 90% to $481 million. The remaining deposits are distributed across several banks as a risk mitigation strategy against potential bank failures, a fate that has befallen some competitors.</p>
<p>Tether boosted its investment in United States Treasury bills to over $53 billion, making up 64% of its reserves. Now, 85% of the USDT token is backed by cash, cash equivalents, and short-term deposits.</p>
<p>For the first time, Tether also disclosed its holdings of <a href="https://crypto.ro/en/news/bitcoin-and-gold-gain-ground-as-us-banking-sector-struggles/">gold and Bitcoin</a> in this quarter&#8217;s report, highlighting its commitment to transparency.</p>
<p>By the end of the first quarter of 2023, Tether had accumulated $1.5 billion in Bitcoin, representing approximately 2% of its total reserves.</p>
<p>Tether will retain all its Bitcoin in self-custody, endorsing Bitcoin as a proven long-term store of value. The company attributes this decision to Bitcoin&#8217;s remarkable price appreciation over the past decade and its robustness against traditional financial downturns.</p>
<p>Paolo Ardoino, Tether&#8217;s Chief Technology Officer, reinforced Bitcoin&#8217;s credibility as an investment asset. Citing its limited supply, decentralization, and widespread adoption, Ardoino asserted that Bitcoin remains a favored choice among institutional and retail investors.</p>
<p>This strategic move aligns Tether with <a href="https://crypto.ro/en/news/microstrategy-continues-bitcoin-shopping-spree-buying-1045-btc/">MicroStrategy</a>, another major player that has been steadily converting its U.S dollar reserves into Bitcoin. However, unlike MicroStrategy&#8217;s indefinite timeframe, Tether intends to make its Bitcoin investments at the end of each month.</p>

Tether follows MicroStrategy’s lead, diversifying reserves with Bitcoin investments

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