Tether, the world’s largest stablecoin, has announced its intention to use up to 15% of its profits to purchase additional bitcoin.
As of March 31, the approximately $1.5 billion in bitcoin Tether held was approximately triple the amount of cash in its reserves. This change will presumably exacerbate that difference.
Tether looks to be confident in the future of Bitcoin with chief technology officer and principal spokesperson Paolo Ardoino saying, “Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.”
Tether’s initial and undisclosed bitcoin purchases were first revealed in a court transcript as part of the New York Attorney General’s case against the company for fraud in 2019.
Early in Tether’s history, it advertised on its website that it would be able to “fund your account with bitcoins and convert to Tethers to stabilize your bitcoins and without having to undertake KYC.”
In a 2021 interview with What Bitcoin Did, Ardoino said that the bitcoin Tether had at that point came from “a past acquisition that we likely did in 2015/2016” and “is probably enough for perpetuity.”
During that same interview, general counsel Stuart Hoegner made clear that “we don’t have the ability to buy the bitcoin at the right time in the market.”
Read more: Did Tether falsify documents to fool cautious banks?
Currently, Hoegner’s Twitter profile shows a modified avi to signal his belief that bitcoin will go to $100k.
The recent changes in Tether’s portfolio have in some sense put it in a stronger position as its surplus has surged. This has allowed the firm to make more aggressive investments — like bitcoin — but its cash on hand has continued to dwindle.
Got a tip? Send us an email or ProtonMail. For more informed news, follow us on Twitter, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.
Source: https://protos.com/tether-to-spend-profits-on-growing-its-mysterious-bitcoin-reserves/