Stablecoin firm Tether has revealed its intention to dedicate 15% of its profits to bitcoin. The company’s announcement comes on the heels of Tether’s recent endorsement report, which confirmed the company has $1.5 billion worth of bitcoin reserves.
Tether’s Strategic Shift: Earnings to Boost Bitcoin Acquisition
Tether, the company behind the largest stablecoin asset in the cryptocurrency economy, has revealed its strategic vision for acquiring Bitcoin (BTC).BTC) using its earnings. Starting this month, Tether will regularly allocate up to 15% of its net operating profit generated to buying bitcoin (BTC), the company is detailed in a blog post. Tether predicts the present and the future BTC Holdings in its reserves will not exceed shareholder capital reserves and will further strengthen and diversify reserves,” the stablecoin issuer added.
Before the announcement, the company’s latest release Certification report It offered to hold $1.5 billion in bitcoin reserves. Notably, the report also noted that a large portion of Tether’s reserves, amounting to $3.39 billion, is invested in precious metals. The company’s announcement on Wednesday said the investment confirms its confidence in bitcoin as a powerful store of value. “The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is based on its strength and potential as an investment asset,” said Paolo Ardoino, Chief Technology Officer at Tether.
The CEO of Tether added:
Bitcoin has consistently proven its resilience and emerged as a long-term store of value with significant growth potential. The limited supply, decentralized nature, and widespread adoption have made bitcoin a favored choice among institutional investors and retail investors alike.
Tether’s announcement comes at a time when it is a stablecoin asset USDT expands towards USDTpeak market value. On May 8, 2022, USDT It achieved an all-time high market capitalization (ATH) of $83.279 billion. At present, it stands very close to ATH, which has a value of $82.67 billion. In an effort to maintain the stablecoin issuer’s growth trajectory, the company said its integration of bitcoin was a pivotal gambit.
“By incorporating Bitcoin into its investment strategy, Tether aims to capitalize on the potential growth of the digital asset, while capitalizing on its position as a trusted and reliable provider of financial infrastructure,” Tether concluded on Wednesday.
What are your thoughts on Tether’s decision to allocate dividends to Bitcoin and its potential impact on the stability of the crypto market? Share your thoughts and opinions in the comments section below.
