Tether to Buy BTC to Strengthen Reserves

May 18, 2023

MCP News Free

Tether to Buy BTC to Strengthen Reserves

Share and Get Popular🚀

Key Point

Starting in May, Tether is buying Bitcoin to strengthen its reserves by buying Bitcoin with 15% of net realized profits

With Bitcoin able to demonstrate a substantial return to investors over the years, Tether is taking a new step to leverage the potential returns and reserve strength that Bitcoin can offer, per Wednesday’s release.

Tether to Buy Bitcoin With Net Realized Profits

In order to strengthen and diversify its reserves, Tether has announced plans to purchase Bitcoin with 15% of its net realized operating profits starting this month.

According to the release, Tether is already holding $1.5 billion in Bitcoin in its reserves, and the new approach to keep buying Bitcoin will exempt unrealized capital gains generated by price increases, and only the substantial profits from operations will be used.

“Tether will consider only the tangible gains from its operations, which consist of the difference between purchase price and net proceeds from the sale or, in case of a maturing investment, between the purchase price and the reimbursed amount (for example the notional amount for a zero coupon investment like with U.S. treasury bills),” the company noted in the blog post.

To ensure that the firm has complete control over its Bitcoin reserves and to avoid any risks which may happen as a result of the involvement of any third party, the Bitcoin custody will not involve any third party, hence, neutralizing the common saying “not your keys, not your Bitcoin,” Tether stated in the post.

“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, CTO of Tether, noted, “Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential, he added.

Meanwhile, earlier this month, Tether released the Q1 financial report, an announcement that shows clients’ trust in the company after it was revealed that Tether’s net profit hit $1.4 billion and an increase in the company’s stablecoin circulation by 20%, closing its Q1 with $81.8 billion in consolidated total assets.

Learn to trade cryptocurrencies through personal interaction with experts with over six years of experience trading crypto on Binance (spot and futures), Kucoin, and Bybit exchanges.

Use PRO20% for your special 20% discount before the promo expires. Click here to see reviews from happy clients.

Join our telegram channels, where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights. And also FREE market updates.