The issuer of the USDT stablecoin—Tether—announced regular investments in the first cryptocurrency since May 2023.
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Tether?#Bitcoin
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Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin. These Bitcoin shall be considered on top of the minimum reserves assets that 100% back tether tokens.
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More ? https://t.co/7zC2swgwWH pic.twitter.com/BOcSDjjmDf
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— Tether (@Tether_to) May 17, 2023
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From this month, Tether will regularly allocate up to 15% of its net realized operating profit to purchasing Bitcoin, the statement said.
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The initiative is aimed at diversifying and strengthening the reserve portfolio. Tether adheres to the philosophy ‘Not your keys — not your coins’ and plans to store its Bitcoins in-house.
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Bitcoin has repeatedly proven its resilience and has become a long-term store of value with substantial growth potential. Its capped supply, decentralised nature and broad distribution have made Bitcoin the preferred choice among both institutional and retail investors, said Tether’s CTO Paolo Ardoino.
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According to the Q1 2023 report, the company owns Bitcoin worth $1.5 billion — about 1.8% of total reserves. In the same period, Tether Limited reported net profit of $1.48 billion.
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Earlier, Tether conducted an analysis of articles in The Wall Street Journal and accused the newspaper of bias against the company.
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As reported in February, media reported on the placement of USDT reserves with Cantor Fitzgerald and Capital Union.