Top dollar based stablecoin issuer Tether says it will take its operating profits and purchase Bitcoin.
Tether said that it first manages reserves but the purchase of Bitcoin, the worlds most popular crypto, will further strengthen reserves.
The purchases of Bitcoin will commence this month with a 15% allocation of net operating profits.
Tether noted that its Q1 2023 Assurance Report, as of the end of March 2023, already held approximately $1.5 billion in Bitcoin in its reserves.
Tether said the strategy means its only path to profits wil now consist of net capital gains from Bitcoin or in the case of a maturing investment, between the purchase price and the reimbursed amount like with U.S. treasury bills.
Tether CTO Paolo Ardoino said the decision to buy Bitcoin is reflective of 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. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favoured choice among institutional and retail investors alike. Our investment in 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 shared that smaller investments performed with its own capital, Tether Group is focusing on building communication through peer-to-peer technologies, energy and bitcoin mining infrastructure