Tether Announces Investment Plan in Bitcoin

Tether, the issuer of the market’s largest stablecoin USDT, has announced plans to hold more Bitcoin in its reserves. Tether recently announced its financial results for the first quarter of 2023. In this statement, the company gave information about its gold and Bitcoin reserves for the first time. Accordingly, it was seen that approximately 2% of Tether’s reserves consisted of $ 1.5 billion worth of BTC. On the other hand, 85% of the reserve consisted of cash and cash equivalents. In addition, the company announced its first quarter profit as $ 1.5 billion.

In the latest statement made by Tether, the company announced that starting this month, it will regularly purchase BTC with 15% of its net operating profit. Announcing its plan to further increase Bitcoin holdings, Tether said that it believes BTC holdings will not exceed its equity and will further strengthen reserves.

While Tether stated that they will protect Bitcoin assets under its own supervision, he expressed that he is convinced that Bitcoin is an ideal investment tool, considering the return performance of the cryptocurrency over the last 10 years. While Bitcoin has had a return of 22,000% in the last 10 years, it is currently trading at an average of 60% below the 2021 record level. Tether CTO Paolo Ardoino made the following statement on the subject:

It was the power and potential of Bitcoin as an investment asset that influenced our decision to invest in Bitcoin, the world’s first and largest cryptocurrency. Bitcoin has proven its stamina over time and has emerged as a long-term store of value with significant growth potential. Its limited supply, decentralized nature and widespread adoption have made Bitcoin a preferred investment alternative among both institutional and individual investors.

Tether currently has a market cap of close to $83 billion with the largest stablecoin issuance and also maintains its position as the 3rd largest cryptocurrency in the market.