#tether announces plans to allocate 15% to Bitcoin purchases

Tether announced plans in May 2023 to allocate up to 15% of its realized net profits to Bitcoin on an ongoing basis.

Despite its volatility, the issuer of the U.S. dollar-pegged stablecoin sees Bitcoin as a strong long-term investment. “Bitcoin continues to prove its resilience and has emerged as a long-term store of value with significant growth potential,” said Paolo Ardoino, chief technology officer at Tether.

The stablecoin issuer may increase its Bitcoin inventory to diversify its reserves beyond cash and cash equivalents. By holding #BTC🔥🔥 and other assets, Tether can protect its reserves from a loss of purchasing power during a prolonged cryptocurrency downturn.