The issuer of USDT, the main stablecoin, plans to use up to 15% of its profits to buy Bitcoin. According to the post, the company will custodian the BTC coins on its own, without using any third-party custodians, and it will add the funds to the surplus of its reserves.
It is not the first time that the Tether issuer has invested in BTC. The company had about $1.5 billion invested in the top cryptocurrency during the first quarter of 2023, representing about 2% of its reserves.
The rest of your funds are divided as follows: about 85% was held in cash, cash equivalents, and other short-term deposits, primarily US Treasuries.
The USDT issuer also disclosed earnings that had record net earnings of $1.48 billion for the period, figure that practically doubled the income capitalized for the previous quarter.
Tether noted in the statement that it does not believe its current and future holdings of BTC will exceed “the shareholder capital cushion.” However, the latest announcement suggests that the company will buy bitcoins on a regular basis.
In the statement, the company pointed to the “impressive returns over the past decade” to make the case for investing in Bitcoin and its long-term potential. The price of BTC has shot up 22,000% in the last 10 years.
Source: Ambito
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