Tether International Limited, the company behind the widely popular stablecoin USDT, dropped a (good) bombshell today by revealing its new bitcoin (BTC) investment game plan.
In a bold move, the company declared that it would allocate 15% of its profits to accumulate more bitcoin. They're not messing around when it comes to their reserve portfolio, which contains precious metals, fiat currencies, treasury bills, money market funds and crypto.
Their most recent independent audit report showed the company with a little over $79 Billion in liabilities, but owning almost $82 billion in assets.
These Bitcoin buys won't be used to back USDT, on that front they're overcollateralized...
This is Tether flexing its financial muscles and going beyond what anyone had demanded of them by beefing up their reserves.
By the end of Q1 2023, Tether already had a cool $1.5 billion worth of bitcoin stashed away. That's a modest 2% of their reserves, though. Gold clocked in at 4%, while a hefty 85% was chilling in cold hard cash and other assets. But Tether's not satisfied with those numbers, they're thirsty for more.
Tether also announced that unlike most institutional investors who let other companies store and safeguard their bitcoins, Tether takes the "not your keys, not your bitcoin" mantra to heart. They'll be be handling their own custody.
New York News Desk
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