TL;DR
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Tether, the company behind the world’s largest stablecoin by market capitalization, has just announced a new investment strategy.
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For any company, $1.48 billion in profit in a single quarter is a big deal – a Web3 company making $1.48 billion in a single quarter during a bear market? Incredible.
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If companies that understand crypto start making more and more institutional investments in BTC, chances are it will eventually spill over to non-crypto related companies that follow suit.
Full story
Tether, the company behind the world’s largest stablecoin by market capitalization, has just announced a new investment strategy.
The plan is to spend ~15% of their profits each month to purchase BTC.
In their Q1 certificate this year they said 85% of their current reserves are held in cash and cash assets (such as US Treasuries) – plus they held $1.5 billion in BTC and $3.4 billion in gold.
This news may not sound too exciting to most, but as we peel the onion, things start to get very exciting indeed.
This is why:
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Tether reported $1.48 billion in net profit in their 2023, Q1 earnings report.
For any company, $1.48 billion in profit in a single quarter is a big deal – a Web3 company making $1.48 billion in a single quarter during a bear market? Incredible.
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Of course, Tether’s product is related to Web3, but their investment in BTC still constitutes an “institutional investment.”
If companies that understand crypto start making more and more institutional investments in BTC, chances are it will eventually spill over to non-crypto related companies that follow suit.
The purpose of their additional investment in BTC is to strengthen their reserves while benefiting from the price increase, the press release said.
The folks at Tether are pretty damn smart and are closely tied to the crypto markets.
Looking forward to seeing how this turns out!
