continue to buy bitcoin
Tether, which issues crypto assets (virtual currencies) such as the US dollar stablecoin “USDT”, announced on the 17th an investment strategy to strengthen its portfolio of reserve assets.
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.
More https://t.co/7zC2swgwWH pic.twitter.com/BOcSDjjmDf
— Tether (@Tether_to) May 17, 2023
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He explained that starting this month, up to 15% of net realized operating income will be used to buy Bitcoin (BTC) on a regular basis. Going forward, he believes that holding bitcoin will help strengthen and diversify reserve assets. Tether says it will not use unrealized gains from price appreciation, only realized gains from its investment strategy to buy bitcoin.
He also argued that buying bitcoin is a conservative and prudent approach to investing for reserve assets. With this approach, we hope to increase Tether’s transparency and clearly communicate the company’s performance and capital allocation strategy.
The company believes Bitcoin has potential as an investment asset based on its earnings over the past decade. He also argued that Bitcoin has established an important position in portfolio diversification due to its increasing recognition and penetration among major financial institutions and its improving performance.
Paolo Ardoino, Tether’s Chief Technology Officer (CTO), commented in today’s announcement:
Bitcoin has continually proven to be resilient. Due to its great potential, it is also used as a long-term store of value.
Capped supply, diversification, and widespread adoption make it a favorite among institutional and individual investors alike.
The company adheres to the notion of “Not your keys, not your coins” (if you don’t have a private key, you don’t own Bitcoin), Bitcoin is managed in-house rather than through a third-party custody company. explained.
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Holding amount as of the end of March
On the 10th of this month, Tether released a report on reserve assets dated March 31, 2023. Among them, he revealed for the first time the amount of Bitcoin held. The company claims to have $1.5 billion worth of Bitcoin as of the end of March.
At the time, Ardoino also explained that the company posted a net profit of $1.48 billion in the first quarter, the highest net profit ever.
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Founded in 2014, it provides a blockchain-based platform to promote the use of fiat currencies digitally. In addition to the US dollar, it also issues tokens pegged to euros and Mexican pesos.
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