Bitfinex, a leading cryptocurrency exchange, takes a unique approach by keeping Bitcoin BTC on its balance sheet. Accordingly, it reinforces its long-term commitment to the world’s first and largest cryptocurrency. Let’s look at the details.
A strategic move for Bitcoin
Bitfinex is rolling out an app that demonstrates its commitment to the cryptocurrency market. Accordingly, some of its transaction fee earnings have historically been held in Bitcoin BTC. Specific figures are not disclosed. However, this move is a clear indication of Bitfinex’s belief in the lasting value of bitcoin. Bitfinex’s steps are not limited to this. Reinvesting in BTC technology is always on their agenda.
Bitfinex CTO Paolo Ardoino highlights the importance of crypto exchanges reinvesting their profits in Bitcoin BTC. Ardoino states that Bitfinex does not just hold BTC. It also states that it actively supports BTC Layer 2 networks such as Lightning Network and Liquid Network. Also, the exchange is involved in the development of the RGB protocol, which is more cost-effective and facilitates custom transactions. This technology also simplifies token issuance on the BTC blockchain. Ardoino said, “Bitfinex is investing in Bitcoin technology. This is much more than just buying Bitcoin.” says.
Bitfinex and Tether: a crypto power duo
Bitfinex’s Bitcoin holdings have not been widely reported so far. But its sister company Tether, which is a stablecoin issuer, has a prominent position as the 11th largest Bitcoin holder globally. This announcement came earlier this year when Tether announced its intention to regularly invest up to 15% of its profits in Bitcoin as part of its strategic exchange for crypto assets. Tether currently holds approximately $1.6 billion worth of BTC in its reserves.
Bitfinex and Tether join a select group of companies that choose to hold Bitcoin on their balance sheets, including industry giants like MicroStrategy, Tesla and Square. This strategy is in line with the growing trend of organizations recognizing the long-term potential and value of cryptocurrencies. According to the latest data from CoinGecko, BTC is trading around $25,900. He also underlines that it maintains its importance and resilience in the crypto market.
Persistent potential
In summary, Bitfinex’s commitment to Bitcoin extends beyond its role as an important cryptocurrency exchange. Bitfinex keeps Bitcoin on its balance sheet. He is also actively involved in the development of BTC-related technologies. On the other hand, this stands as a testament to the lasting potential of cryptocurrencies in the financial environment.
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