Tether (USDT) Will Buy Bitcoin Every Month!
According to company statement this month 15% of net realized operating profits will be marked for the purchase of Bitcoin.
According to company statement this month 15% of net realized operating profits will be marked for the purchase of Bitcoin.
Tether Will Buy Bitcoin to Strengthen Its Reserves
Stablecoin Tether has announced that it will regularly purchase Bitcoin in order to strengthen its reserves. According to the company 15% of net realized operating profits will be reserved for Bitcoin purchases.
Tether USDT has decided to reduce its bank exposure due to recent bank failures. Tether’s bank deposits were reduced by $481 million which is down from $5.3 billion in Q1.
In addition, Tether added gold and Bitcoin to its reserves for the first time. Following Tether’s decision to withdraw deposits from banks, it was announced the company would regularly purchase Bitcoin.
Tether’s CTO Paolo Ardoino made the following statements about Bitcoin:
“Bitcoin has consistently proven its resilience and has emerged as a high-potential store of value. Its limited supply, decentralized nature and widespread adoption have made it a preferred choice among both institutional and retail investors.”
Tether Holds $1.5 Billion in Bitcoin
According to a March 2023 report, the company currently holds $1.5 billion worth of Bitcoin in its reserves. The 15% set aside for the company’s new investment strategy will be based on realized profits thus not including losses from price increases within the portfolio.
Arduino announced on Twitter that in addition to the company’s 100% reserves backing issued tokens, it has accumulated an additional $2.5 billion in reserves from other investments, such as interest rates on US Treasury bonds and gold.
Profits Are Up But Critics Are “Skeptical”
Tether’s latest financial update noted the company’s tremendous success also noting that net profits exceeded $1.48 billion in Q1 and reserves are at an all-time high. However, the company often faces criticism that its reserve claims are dubious.
Most recently, former Securities and Exchange Commission (SEC) attorney John Reed Stark said that the statements about reserves were meaningless, even though the company is not regularly audited. Critics of Tether have expressed concern and agreement that there has not been sufficient disclosure of the US dollar reserves allegedly behind USDT.
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