Tether, the world’s biggest stablecoin issuer, says it will now direct as much as 15% of its profits into Bitcoin (BTC).
In an official announcement, Tether, the firm behind USDT, says it will start plowing profits into Bitcoin, which it will self-custody, to further strengthen its reserves.
“Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC). 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. As reflected in Tether’s Q1 2023 Assurance Report, as of the end of March 2023, Tether already held approximately $1.5 billion in BTC in its reserves.
While it is common practice among many institutional investors to third-party custody their Bitcoin, Tether believes in the philosophy “Not your keys, not your Bitcoin” and takes possession of the private keys associated with all of its Bitcoin holdings.”
Tether’s chief technology officer Paolo Ardoino also acknowledged the company’s move on Twitter, explaining its logic.
“Why Bitcoin and not something else? Because Bitcoin is the epitome of a sound and secure monetary system with its decentralized nature and scarcity, Bitcoin is revolutionizing the concept of money and challenging traditional finance.
Bitcoin has defied expectations, shattered boundaries, and provides access to the global financial system to anyone with an internet connection.”
Last week, Tether reported that it made nearly $1.5 billion in profits in the Q1 of this year alone.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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