The post Tether Reveals Strategy to Invest up to 15% of Profits in Bitcoin appeared first on Coinpedia Fintech News
The issuer of the world’s largest stablecoin, Tether, has announced the firm’s plans to allocate some of its profits to buy Bitcoin. According to a recent statement, Tether is allocating up to 15% of the realized profit from investments to purchase Bitcoin.
The new investment strategy will begin this month, according to the latest statement from Tether. The portion of profits that excludes any unrealized price appreciation will be used to add Bitcoin to its stablecoin reserve.
Tether to Begin Buying BTC as Part of a New Strategy
Tether’s recent announcement follows its report of $1.5 billion in net profit for the first quarter. As part of its strategy, the stablecoin issuer has decided to regularly acquire bitcoin and expand its existing holdings. Additionally, the company stated that the BTC bag will be safeguarded in their own custody without relying on any third parties.
The Q1 report that was released by Tether on May 10, 2023, revealed that the firm holds $1.5 billion in BTC and $3.4 billion worth of gold, along with other assets, as reserves for USDT. Based on Tether’s attestation for the first quarter of 2023, approximately 85% of its reserves consist of cash and cash-like assets, including U.S. Treasury bonds.
Paolo Ardoino, chief technology officer of Tether, said in a statement: “Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential.”
He also stressed that Bitcoin investment is also a method of aligning themselves with transformative technology. USDT is the largest stablecoin by market cap, according to data from CoinGecko. The market cap of USDT stands at $82 billion at the moment.
Also Read : Bitcoin Will Soon Return To Its ATH Level, Predicts Tether CTO
Over the years, Tether has faced criticism from within the cryptocurrency industry regarding its lack of transparency regarding its reserves and its controversial investment choices. However, the firm has been very transparent with its decisions.
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