Tether Holding, the operator of USDT, the largest fixedcoin, announced its investment strategy. Accordingly, the company will allocate 15% of its net operating profit every month to buy Bitcoin.
Tether said its new investment strategy will begin this month and that it does not expect current and future Bitcoin holdings in its reserves to exceed its shareholder capital buffer.
According to Tether’s confirmed assets in the first quarter, it held approximately $1.5 billion of Bitcoin in reserves backing its USDT token as of the end of March.
Tether’s assets, certified by third parties, showed that of its $81.8 billion in total reserves, approximately 85 percent of the collateral backing USDT, or $69.3 billion, was stored in cash and cash equivalents.
Stablecoins serve as digital currencies designed to maintain one-to-one value with a less volatile asset, such as the dollar, by maintaining large reserves typically set aside as collateral.
Visits: 28
