Tether to buy Bitcoin based on monthly net profits
Tether said that Bitcoin’s decentralized nature and its long-term store of value made it an obvious choice for the stablecoin issuer. Tether, the issuer behind the largest stablecoin USDT, is following in the footsteps of Microstrategy in order to manage its reserves. The stablecoin issuer plans to strengthen its reserves with the help of Bitcoin and move away from United States-based government debts. In an announcement on May 17, Tether revealed that they plan to invest a portion of their profits into Bitcoin on a month ly basis. The firm said it will “regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC).” The announcement about Tether’s BTC purchase comes within a week of the company’s quarterly financial report, where the stablecoin issuer reported $1.5 billion in net profits . According to a statement from the company, Tether will keep all of its Bitcoins in self-custody. As of the first quarter's end, it has $1.5 billion in...