Tether, the stablecoin issuer, declared on Wednesday that it will start regularly buying Bitcoin (BTC) using a percentage of its earnings as part of a new investment plan. The corporation will start allocating up to 15% of its realized investment gains this month to buy BTC, which will subsequently be added to its reserve excess. Without the assistance of any outside custodians, Tether plans to keep the BTC it has purchased on its own.
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Tether stated last week that in addition to its $82 billion USDT stablecoin, it also possesses $1.5 billion in Bitcoin and $3.4 billion in gold. The company’s reserves consist of 85% cash and cash-like assets, including U.S. Treasury bonds.
The purchase will strengthen their portfolio and align the business with transformational technology, according to Paolo Ardoino, chief technology officer of Tether, who stressed the long-term value and growth potential of Bitcoin. The company’s choice is a step in the right direction toward resolving issues with investment procedures and transparency.
