Popular stablecoin manager Tether International Limited (Tether) has unveiled a new investment strategy for its reserves portfolio.
The company will allocate a portion of its net operating profit generated, up to 15%, towards acquiring Bitcoin (BTC) on a regular basis.
Steady in third place
In a statement released on May 17, Tether outlined its investment approach, emphasizing its focus on capitalizing on profits made.
The company has made it clear that any unrealized capital gains resulting from price increases will be ignored, ensuring that only tangible gains from its operations are considered.
(embed) https://www.youtube.com/watch?v=iKP-CW9efs0 (/embed)
Currently, the company has approximately $1.5 billion in BTC in its reserves as of the end of March 2023. However, unlike institutional investors, Tether is taking a different approach, acquiring the private keys associated with its bitcoin holdings.
The decision comes amid ongoing scrutiny of the transparency of its reserves. The stablecoin Tether (USDT) ranks prominently for being the third largest digital asset globally, after Bitcoin (BTC) and Ether (ETH).
According to CoinGecko data, USDT boasts a total market capitalization of $82.8 billion.
Bitcoin philosophy
for each rope press release From March:
“Bitcoin has consistently proven its resilience and emerged as a long-term store of value with significant growth potential. Its limited supply, decentralized nature, and widespread adoption have made Bitcoin a favored choice among institutional investors and retail investors alike. Our investment in Bitcoin is not only a way to improve the performance of our portfolio, but it is also A way to align ourselves with a transformative technology that has the potential to reshape the way we do business and live our lives.”
Paolo Arduino, Chief Technology Officer of Tether.
Tether is not the first company to adopt this approach. Despite selling some of its bitcoin holdings for tax purposes in December, MicroStrategy, a business software company known for its affinity for cryptocurrency, also remains a staunch supporter of bitcoin.