latest tether news is that the company behind the leading stablecoin in the market USDT wants to allocate a portion of its profits to purchase Bitcoin,
“Investment Strategy [is] with the aim of further strengthening its reserves portfolio,” Tether said in a Press release Published on Wednesday. According to the announcement, the purchase of bitcoins will start from this month itself.
Tether is looking to diversify and strengthen its reserves
Tether’s reserves included $1.5 billion in BTC as of March this year, and the new purchases are aimed at consolidating and diversifying these reserves. Tether announced in October 2022 that it had reduced commercial paper from its reserves to zero. Instead, it increased investment in US Treasury bills as USDT’s 1:1 backing to ensure it was the safest reserve held by the USD.
Tether CTO Paolo Ardoino said in a statement that the decision to invest in BTC is “below” that of the benchmark cryptocurrency.Strength and potential as an investment property.
He pointed to bitcoin’s resilience and the fact that “digital gold” is now seen as a long-term store of value. Furthermore, it has shown significant growth potential as the investment asset of choice for a growing number of institutional and retail investors with fundamental factors such as limited supply, decentralized nature, and widespread adoption.
Commenting further on Tether’s BTC move, Ardoino said:
“Our investment in bitcoin is not only a way to enhance the performance of our portfolio, but it is also a way to align ourselves with a transformative technology that has the potential to reshape the way we do business and live our lives. Has potential.”
Even though the company will allocate up to 15% of its profits to regular BTC purchases, the total bitcoin holdings in USDT reserves will not exceed the stablecoin issuer’s shareholder capital cushion. Tether will also not hold its bitcoins with any third party provider. , but as part of the philosophy of “Take control of your holdings”Not your keys, not your bitcoin.,
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