Stablecoin Issuer Tether Reveals Plan to Allocate Profits Into Bitcoin
Tether, the stablecoin enterprise, has revealed its intention to devote 15% of its profits to bitcoin. The firm’s announcement comes on the heels of Tether’s recent attestation report, which emphasized the company’s possession of bitcoin reserves worth $1.5 billion.
Tether’s Strategic Shift: Profits to Fuel Bitcoin Acquisition
Tether, the company behind the crypto economy’s largest stablecoin asset, has unveiled its strategic vision to acquire bitcoin (BTC) using its profits. “Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing bitcoin (BTC),” the firm detailed in a blog post. “Tether anticipates that the current and future BTC holdings in its reserves will not exceed the Shareholder Capital Cushion and will further strengthen and diversify the reserves,” the stablecoin issuer added.
Prior to the announcement, the company’s latest attestation report showcased its possession of $1.5 billion in bitcoin reserves. Notably, the report also indicated that a significant portion of Tether’s reserves, amounting to $3.39 billion, is invested in precious metals. The company’s announcement on Wednesday said that the investment underscores its confidence in bitcoin as a robust store of value. “The decision to invest in bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset,” Paolo Ardoino, Tether’s CTO, said.
The Tether executive added:
Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned bitcoin as a favored choice among institutional and retail investors alike.
Tether’s announcement comes at a time when its stablecoin asset USDT is scaling toward USDT’s peak market capitalization. On May 8, 2022, USDT achieved an all-time high (ATH) market cap of $83.279 billion. Presently, it stands awfully close to that ATH, valued at $82.67 billion. In a bid to sustain the growth trajectory of the stablecoin issuer, the company said its integration of bitcoin stands as a pivotal maneuver.
“By incorporating Bitcoin into its investment strategy, Tether aims to capitalize on the digital asset’s potential growth, while leveraging its position as a trusted and reliable financial infrastructure provider,” Tether concluded on Wednesday.
What are your thoughts on Tether’s decision to allocate profits to Bitcoin and its potential impact on the stability of the crypto market? Share your insights and opinions in the comments section below.
Source: Bitcoin.com
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Text source: Crypto Breaking News
