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Tether (USDT) Plans to Boost Its $1.5 Billion Bitcoin (BTC) Holdings

Wed, 05/17/2023 - 14:50
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Tomiwabold Olajide
Tether set to increase its Bitcoin (BTC) reserves
Tether (USDT) Plans to Boost Its $1.5 Billion Bitcoin (BTC) Holdings
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Tether, the company managing the reserves of the first and most widely used stablecoin, Tether (USDT), disclosed in its most recent quarterly assurance report that it holds approximately $1.5 billion in BTC in its reserves.

Now Tether is set to increase this figure, as it says that beginning this month, it will regularly allocate up to 15% of its realized net operating profits to purchasing Bitcoin (BTC).

This, according to the company, is part of its most recent investment plan meant to boost its portfolio of reserves.

Tether claims that under this new strategy, it will ignore unrealized capital gains resulting from price increases and instead concentrate solely on utilizing realized profits from its investing plan. This means that Tether will solely make use of the tangible gains from its operations.

The company adds that it will not utilize a third party for its Bitcoin custody.

Tether (USDT) Almost Recovers Market Value Lost After Terra UST Collapse

Paolo Ardoino, CTO of Tether, gives the reason for this move: "The decision to invest in Bitcoin, the world's first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential."

The Bitcoin price has yet to react to this positive news, as it remains down 1.24% in the last 24 hours at $26,727.

Lightning introduces Taproot Assets version

Bitcoin Lightning Network developer Lightning Labs has announced Taproot Assets v0.2, which is currently on the testnet. This solution aims to support asset creation on Bitcoin while preventing high fees and congestion issues.

In related news, Michael Saylor, the chairman of business intelligence company MicroStrategy, released an update at the beginning of the week informing that the company is developing a product to provide each corporate account holder with a Bitcoin wallet and Lightning address.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.