Tether Uses 15% Of Its Net Realized Operating Profits To Purchase Bitcoin
Tether, the stablecoin issuer, has announced that it would acquire Bitcoin using 15% of its monthly earnings from investing in US government bonds. This is said to be part of an effort to lessen reliance on US government bonds. The stablecoin issuer said in a May 17 corporate statement that it would self-custody the bought BTC, adding that its acquisition would concentrate only on realized profits from its investing strategy, ignoring unrealized capital gains earned by price rises.
The news comes only a week after the stablecoin issuer declared $1.5 billion in net earnings in its quarterly financial report. It has $1.5 billion in Bitcoin on hand at the end of the first quarter of 2023, accounting for around 2% of its total reserves. Cash, cash equivalents, and other short-term deposits accounted for 85% of the assets, with Treasury bills ranking first. If the net profit remains constant, the company will purchase around $74 million, or approximately 2775 BTC, each month in the future. The issuer, on the other hand, anticipates that the existing and future BTC holdings in its reserves will not exceed the Shareholder Capital Cushion, therefore strengthening and diversifying the reserves.
Source
https://t.me/Bitcoin_NewsTg
