Stablecoin issuer Tether has announced plans to buy bitcoin regularly with 15% of its operating profits.
Tether International Limited (lanyard) wants to further strengthen its reserves by buying bitcoins (B T c) with its operating profit. One official post Said earlier this month, the stablecoin company will regularly allocate up to 15% of its realized net operating profit to BTC purchases.
The report also states that Tether sees current and future BTC holdings as no more than a shareholder capital cushion. Thus, the stablecoin issuer seeks to consolidate, grow and diversify its reserves.
In its first quarter assurance report, Tether revealed that it had approximately $1.5 billion in BTC reserves as of the end of March. The company also said that it has the private keys associated with all of its bitcoin holdings.
Tether CTO Expounds on Bitcoin Purchase Plan
Speaking on Tether’s decision to buy bitcoin with the platform’s surplus funds, Chief Technical Officer Paolo Ardoino explained:
“The decision to invest in bitcoin, the world’s first and largest cryptocurrency, comes down to its strength and potential as an investment asset. Bitcoin has consistently proven its resilience and potential as a long-term store of value with substantial growth potential.” has emerged.
Ardoino said:
,[Bitcoin’s] Limited supply, decentralized nature, and widespread adoption have kept bitcoin as a preferred option among institutional and retail investors.
The Tether CTO further added that the company’s bitcoin investment not only improves its portfolio but aligns the stablecoin issuer with a “transformative technology”. Ardoino believes that this revolutionary technology could potentially reorganize “the way we do business and live our lives”.
The Tether company said that BTC’s continued impressive track record underscores the investment potential of the leading digital currency. Furthermore, the company noted that the growing mainstream recognition of crypto has solidified its position as an essential component in diversified investment portfolios.
Tether will specifically focus on implementing an earned profit investment strategy to promote its bitcoin-investment agenda. The company only considers tangible operating profit, disregarding subsequent price-driven unrealized capital gains.
Tether’s planned BTC purchases are part of a broader conservative and informed approach to investment decisions. Furthermore, by regularly making gains on bitcoin, the stablecoin issuer seeks to reflect transparency and clarity on its capital allocation strategy.
Q1 2023 Assurance Report
On Wednesday, May 10, Tether’s published assurance report showed its reserve surplus at a record high of $2.44 billion. In addition, the company reported an increase of $1.4 billion in net profit for the first three months of the year.
Tether closed the first quarter with $81.8 billion in consolidated net assets, with most of its investments remaining highly liquid.
Ardoino expressed his happiness with the company’s overall performance in Q1 2023, adding that Tether’s Q2 outlook is positive. The CTO added that the stablecoin issuer will monitor the risk-adjusted return of the asset on an ongoing basis and make changes accordingly. Ardoino also reassured customers that Tether will not expose their funds to high-risk scenarios amid an uncertain global economy. The company is looking to double down on what it did well in the first quarter while exploring other key opportunities in the digital asset space.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Bitcoin Crypto Related Post