Tether to Allocate 15% of Revenue to Monthly BTC Purchases, Boosting Reserves

Tether to Allocate 15% of Revenue to Monthly BTC Purchases, Boosting Reserves

Tether, the issuer of the world's largest stablecoin USDT, has announced a significant move by allocating a portion of its revenue to purchase Bitcoin (BTC) on a monthly basis. This initiative is aimed at further strengthening Tether's reserves and providing additional stability to the USDT ecosystem. According to the announcement, Tether will allocate up to 15% of its "realized profits from investments" to BTC purchases. These purchases will be made on a monthly basis, and the acquired BTC will be added to Tether's reserves. Notably, Tether will hold the purchased BTC in its own custody, without utilizing third-party custodians. This move by Tether is a testament to the company's commitment to transparency and its belief in the long-term potential of Bitcoin. By allocating a portion of its revenue to BTC purchases, Tether is effectively hedging against market volatility and uncertainties. It's worth mentioning that Tether reported a net income of $5.2 billion in the first half of this year, demonstrating the company's strong financial performance. With its consolidated equity reaching an all-time high of $12 billion, Tether is well-positioned to continue its growth and expansion. The addition of BTC to Tether's reserves is expected to further enhance the stability and credibility of USDT, reinforcing its position as the leading stablecoin in the cryptocurrency market. This move by Tether is likely to be welcomed by investors and users, who will appreciate the increased transparency and the long-term value that BTC brings to the USDT ecosystem.