Tether to Allocate up to 15% of its Profits Towards Purchasing Bitcoin

Stablecoins, including Tether, were under scrutiny following the demise of Terra UST in 2022. The issues of reliability, sturdiness, and trust began to rise as questions began popping up regarding how sturdy these stablecoins are. However, Tether has fully stood by its statement that USDT is overcollateralized.

The stablecoin issuer also released its Q1 assurance report, in which it unveiled a $1.5 billion BTC reserve. As a part of its new investment strategy, Tether is planning to ramp up Bitcoin purchases.

Also read: European Union Passes Law Requiring Identification for All Crypto Transactions

Tether to allocate up to 15% of profits to purchase Bitcoin

According to the latest announcement by Tether, the firm will allocate up to 15% of its net realized operating profits to purchasing Bitcoin. It also ensured that the future and current BTC reserves would not exceed the shareholder capital cushion.

The stablecoin issuer also ensured that it would hold possession of the private keys associated with all of its Bitcoin holdings. Additionally, the statement highlights that only realized profits will be utilized for the investment strategy.

Also read: Floki Inu Makes Strides with Three Fresh Exchange Listings, Stirring Price Fluctuations