Tether Said it Will Invest Part of its Profits in Bitcoin As a Long-Term Strategy

Bitcoin and Tether

Tether, the largest stablecoin issuer, bought 8,888 bitcoins in Q4 2023, increasing its total holdings to 66,465 BTC, worth $2.8 billion. Tether said it will invest part of its profits in BTC as a long-term strategy. Tether’s bitcoin holdings represent 0.3% of the total supply of bitcoin.

Tether’s Increasing Bitcoin Holdings

Tether, the issuer of the largest stablecoin by market capitalization, announced that it bought 8,888 bitcoins (BTC) in the fourth quarter of 2023, increasing its total holdings to 66,465 BTC, worth about $2.8 billion at current prices. Tether said that it will continue to invest a part of its profits in BTC as a long-term strategy.

Tether is a cryptocurrency that is pegged to the US dollar at a 1:1 ratio, meaning that each tether (USDT) is backed by one US dollar in reserve. Tether claims that its stablecoin provides a safe and convenient way for traders and investors to hedge against volatility and access the crypto market. Tether has a market cap of over $100 billion, making it the third-largest cryptocurrency after bitcoin and ethereum.

Investment and Diversification Strategy

Tether’s bitcoin purchases are part of its treasury management strategy, which aims to diversify its assets and generate returns for its stakeholders. Tether said that it believes in the long-term potential of bitcoin as a store of value and a hedge against inflation. Tether also said that it supports the development and innovation of the bitcoin ecosystem .

Tether’s bitcoin holdings represent about 0.3% of the total supply of bitcoin, which is capped at 21 million. Tether’s bitcoin purchases have been met with mixed reactions from the crypto community, with some praising its bullish stance and others questioning its transparency and regulatory compliance. Tether has been faced with several lawsuits and investigations over its reserve claims and its alleged role in manipulating the bitcoin price in the past.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.