Print
Tether to Further Strengthen Reserves Through Purchase of Bitcoin with Realized Net Operating Profits

17 May 2023  Tether International Limited (Tether), the company managing the reserves of the first and most widely used stablecoin, announced today its latest investment strategy aimed at further strengthening its reserves portfolio. 

Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC). Tether anticipates that the current and future BTC holdings in its reserves will not exceed the Shareholder Capital Cushion and will further strengthen and diversify the reserves. As reflected in Tether’s Q1 2023 Assurance Report, as of the end of March 2023, Tether already held approximately $1.5 billion in BTC in its reserves. While it is common practice among many institutional investors to third-party custody their Bitcoin, Tether believes in the philosophy "Not your keys, not your bitcoin" and takes possession of the private keys associated with all of its Bitcoin holdings.

Under this new approach, Tether will focus exclusively on utilizing realized profits from its investment strategy, disregarding unrealized capital gains generated by price increases. This means that Tether will consider only the tangible gains from its operations, which consist of the difference, between purchase price and net proceeds from the sale or, in case of a maturing investment, between the purchase price and the reimbursed amount (for example the notional amount for a zero coupon investment like with U.S. treasury bills). 

Tether’s purchase of BTC is part of its conservative and prudent approach to investment decisions aimed at strengthening, increasing and diversifying its reserves. By implementing this framework, Tether aims to enhance transparency and provide a clearer view of the company's performance and capital allocation strategy.

"The decision to invest in Bitcoin, the world's first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset,” said Paolo Ardoino, CTO of Tether. “Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike. Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.”

Tether believes that Bitcoin has demonstrated its investment potential with a track record of impressive returns over the past decade. Its performance, combined with increasing recognition and adoption by major financial institutions, has cemented Bitcoin's position as a key component in diversified investment portfolios.

By incorporating Bitcoin into its investment strategy, Tether aims to capitalize on the digital asset's potential growth, while leveraging its position as a trusted and reliable financial infrastructure provider. Tether's decision to allocate a portion of its net realized operating profits towards Bitcoin highlights the company's confidence in the cryptocurrency market and its belief in supporting the broader ecosystem.

Among other smaller investments performed with its own capital, Tether Group is focusing on building communication (through peer-to-peer technologies like Holepunch), energy and bitcoin mining infrastructure 

Tether will continue to adhere to stringent risk management practices to ensure the stability and security of its operations. The company remains steadfast in its commitment to maintaining the stability of its flagship stablecoin, Tether (USD₮), while exploring innovative opportunities in the ever-evolving digital asset landscape.

To learn more, visit our website, follow us on Twitter, and join our Telegram channel.

latest news

Tether Announces QVAC, Its Upcoming Development Platform for Infinite and Ubiquitous Intelligence – Deploying and Evolving AI Agents on User Devices, Not Big Tech Data Centers

14 May, 2025 – Tether, the largest company in the digital asset industry, today announced its upcoming QVAC (QuantumVerse Automatic Computer), a development platform for Infinite Intelligence, designed for humans and machines alike, that enables highly scalable AI applications and agents to run directly on local devices without dependence on centralized services, cloud infrastructure, thereby […]

Learn more
Tether Gold (XAU₮) Launches on Maxbit, Introducing Tokenized Gold to Thailand’s Digital Asset Market

13 May, 2025 — Tether, the largest company in the digital asset industry, is pleased to announce the official listing of Tether Gold (XAU₮) on Maxbit, a digital asset exchange based in Thailand. Maxbit will become the first exchange in Thailand to offer access to Tether Gold, a tokenized gold product backed 100% by physical […]

Learn more
Tether Awards Another $100,000 Grant to BTCPay Server Foundation, Reaffirming Its Commitment to Free and Open Source Software Development

8 May, 2025 – Tether, the largest company in the digital asset industry, has reinforced its commitment to the Free and Open Source Software (FOSS) movement with another $100,000 grant to the BTCPay Server Foundation. This marks the second consecutive year Tether has extended direct support to the Foundation, reaffirming its strategic mission to champion […]

Learn more
Read all news