Tether to Purchase Bitcoin as Part of Reserves Strategy Shift
- Stablecoin issuer to spend up to 15% of net profit on Bitcoin
- Tether already owns $1.5 billion of the world’s largest token
Tether Holdings Ltd., the operator of the largest stablecoin, will invest as much as 15% of profits on a regular basis in Bitcoin as part of a strategy to diversify its reserves.
Starting this month, all Bitcoin purchased will be considered as additional holdings on top of the minimum assets kept in reserve to back its USDT token and other stablecoins, the British Virgin Islands-based firm said in a statement. Stablecoins are digital tokens that aim to keep a one-to-one value with a less volatile asset like the dollar, typically by maintaining large reserves as segregated collateral.