Tether to Allocate Up to 15% of Net Realized Profits for Bitcoin Purchase

In a recent announcement, Tether, the issuer of the world’s largest stablecoin, has revealed its intention to use a portion of its profits to purchase Bitcoin. The company has stated that it would dedicate up to 15% of these profits towards this endeavor.

Tether tweeted that “Bitcoin shall be considered on top of the minimum reserves assets that 100% back tether tokens”:

Tether has announced that the implementation of their new investment strategy is set to commence this month, as per their latest statement. Tether will prioritize employing only capital gains already realized through its investing plan. Profits will be calculated as the total of the purchase price minus the net revenues from the sale or reimbursement. This method aims to improve visibility into the company’s financial standing and operational efficiency.

Tether just stated that their quarterly net profit amounted to $1.5 billion. To bolster its strategy, the stablecoin issuer has shared plans to procure bitcoin and broaden its current portfolio consistently. The company declared that the BTC bag would be securely stored in its custody without any involvement of third-party entities.

In a recent statement, Paolo Ardoino, the Chief Technology Officer of Tether, expressed his views on the matter by saying:

Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential.

Tether released its Q1 report on May 10, 2023, disclosing that the company has amassed $1.5 billion in BTC and $3.4 billion worth of gold, among other assets, to serve as reserves for USDT. In breaking news, Tether has released its attestation for Q1 2023, revealing that a staggering 85% of its reserves comprise cash and cash-like assets, notably U.S. Treasury bonds.