There has been a remarkable development for the crypto money markets. Tether (USDT), which is among the stable coins with the largest volume in the world, announced that it has switched to a new investment strategy and will regularly buy Bitcoin (BTC) within the scope of this strategy. According to the statement, the USDT team will invest 15 percent of its profits in Bitcoin from now on.
Tether is a $83 billion company today and has invested in various fields up to this point. So much so that some of the company reserves were already in crypto assets. Tether also has some investments in the US stock markets. Now, there will be a small change in this. The company will take out its balance sheet on a monthly basis and see how much profit it has made. Suppose there is a profit of $100; Bitcoin will be purchased with 15 percent of it, that is, 15 dollars.
Tether already has $1.5 billion worth of BTC!
As a matter of fact, Tether is not a company that is far from Bitcoin investments. According to a statement made in March 2023, the team already has $1.5 billion worth of BTC. In the next period, the amount of BTC held will increase regularly. Tether will not deal with a third-party institution for its own Bitcoin reserve. The storage of Bitcoins will be under the company’s own responsibility.
So why Bitcoin and not Ethereum (ETH) or Ripple (XRP)?
In the statement made by Tether Chief Technology Officer Paolo Ardoino, it was also explained why the company preferred BTC over other crypto assets. According to Ardoino’s statement, Bitcoin, the world’s first and largest volume cryptocurrency, was preferred for investment due to its decentralized structure, limited supply and worldwide adoption. Moreover, Polo Ardoino thinks that Bitcoin will continue to grow over the years.
How will this decision reflect on the cryptocurrency markets?
That a crypto-focused company like Tether will store BTC is not surprising, nor is it a negative thing. The company, which already has $ 1.5 billion in BTC, will have much more Bitcoin in the future and will be among the big investors. This benefits both USDT and BTC. As a result, any damage to BTC will be directly reflected in Tether. Being aware of this, the company continues to work for the world’s largest stable coin USDT.
This content cannot be considered as investment advice.
53488
