Tether Pours 15% of Profits into Bitcoin, Showing Confidence in Crypto

Summary of Tether’s Move of Confidence

• Tether, the world’s largest stablecoin issuer, announced that it is investing 15 percent of its net profits into Bitcoin.
• The investment in Bitcoin is intended to strengthen and diversify Tether’s $1 pegged stablecoin reserves.
• The move highlights the company’s confidence in the cryptocurrency market.

Tether Plans 15% of Its Net Profits Into Bitcoin

Tether, the world’s largest stablecoin issuer by market capitalization, said it is planning to invest 15 percent of its net profits into bitcoin to strengthen its reserves. Tether said it expects the move to “strengthen and diversify” its reserves of its $1 pegged stablecoin, in a statement released on Wednesday.

“Aligning Ourselves with Transformative Technology”

“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,” said Paolo Adoino, Tether’s chief technology officer. Tether said investing in bitcoin “highlights the company’s confidence in the cryptocurrency market.”Bitcoin reached a high of almost $69,000 in November 2021, but has since fallen to closer to $27,000 as of Wednesday morning.

“Navigating Ever-Changing Macroeconomic Landscape”

FinancialsTether has a market cap valued at close to $83 billion followed by USD Coin and Binance USD, according to CoinMarketCap. Tether reached a record net profit of $1.48 billion in the first quarter which took its total excess reserves to $2.44 billion, according to the company’s latest attestation report. “Tether is committed to navigating the ever-changing macroeconomic landscape for its users, who have trusted Tether for the last nine years to provide the most reliable stablecoin in the market,”the company said earlier this week.

“Regulating Stablecoins: Low Hanging Fruit?”

US lawmakers are working to regulate stablecoins such as mandating reserve requirements and banning algorithmic stablecoins. A stablecoin bill is seen as low-hanging fruit for lawmakers to pass compared other legislation regulating crypto industry due its potential popularity amongst members from both sides of politics..They came close at end 2019 when former House Financial Services Chair Maxine Waters D-Calif., and Patrick McHenry R-N.C worked together bill Treasury Department Federal Reserve but didn’t get there time frame set out .The House Financial Services Committee will meet Thursday hearing called “Putting ‘Stable’ ‘Stablecoins:’ How Legislation Will Help Stablecoins Achieve Their Promise.”

“Confidence In The Cryptocurrency Market”

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Tethered released an official statement that their investment into bitcoin serves multiple purposes – enhancing their portfolio performance while simultaneously being aligned with cutting edge technologies that can revolutionize how we live our life and do business – all while showing their confidence within cryptocurrency markets despite recent drops prices over past months since hitting peak .