Tether will allocate up to 15% of profits to buy bitcoin
The USDT stablecoin issuer, Tether, has announced regular investments in the first cryptocurrency since May 2023.
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.
“From this month on, Tether will regularly allocate up to 15% of its net realized operating income to buying Bitcoin,” the post reads.
The initiative is aimed at diversifying and strengthening the portfolio of reserves. Tether adheres to the philosophy “Not your keys, not your coins” and plans to independently store their bitcoins.
“Bitcoin has proved its resilience many times over and has become a long-term store of value with significant upside potential. Its limited supply, decentralized nature, and widespread adoption have made Bitcoin the preferred choice for both institutional and retail investors,” said Tether CTO Paolo Ardoino.
According to a report for the first quarter of 2023, the company owns $1.5 billion worth of bitcoin - about 1.8% of total reserves. During the same period, Tether Limited recorded a net profit of $1.48 billion.