Tether's New Strategy: Buying Bitcoin with Profits
Tether, a leading stablecoin issuer, has unveiled a new investment approach emphasizing Bitcoin (BTC). The company will allocate up to 15% of its net realized operating profits to purchase Bitcoin, thereby diversifying and strengthening its reserves. As of March 2023, Tether already had approximately $1.5 billion in BTC reserves.
Contrary to many institutional investors, Tether will self-custody its Bitcoin, aligning with the "Not your keys, not your Bitcoin" philosophy. The company's strategy solely relies on realized profits from investments, excluding unrealized capital gains due to price fluctuations.
Paolo Ardoino, Tether's CTO, expressed confidence in Bitcoin's potential as an investment asset, citing its resilience, limited supply, and widespread adoption. Tether views this investment as aligning with a transformative technology that could reshape business and lifestyle norms.
In addition to Bitcoin, Tether Group is also investing in communication (via peer-to-peer technologies like Holepunch), energy, and Bitcoin mining infrastructure.
Tether's commitment to this new strategy is a testament to its confidence in the cryptocurrency market and digital asset ecosystem. Nonetheless, the company maintains its dedication to risk management and the stability of its stablecoin, USD₮, amidst exploring opportunities in the dynamic digital asset landscape.
Paolo Ardoino, Tether's CTO, expressed confidence in Bitcoin's potential as an investment asset, citing its resilience, limited supply, and widespread adoption. Tether views this investment as aligning with a transformative technology that could reshape business and lifestyle norms.
In addition to Bitcoin, Tether Group is also investing in communication (via peer-to-peer technologies like Holepunch), energy, and Bitcoin mining infrastructure.
Tether's commitment to this new strategy is a testament to its confidence in the cryptocurrency market and digital asset ecosystem. Nonetheless, the company maintains its dedication to risk management and the stability of its stablecoin, USD₮, amidst exploring opportunities in the dynamic digital asset landscape.
