According to the report, Paolo Ardoino, the CTO of Tether, disclosed on May 17 that the company intends to invest 15% of its business profits in Bitcoin assets. He added that the decision is in line with the company's objective of diversifying its reserves to assure stability.

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The Chief Technology Officer added that Tether has no plans to liquidate any of its Bitcoin assets. In addition, he stated that the company's liquidity reserves exceed the value of BTC it holds. This provides the company greater stability and credibility on the cryptocurrency market.

According to statistics released by the company in March, Tether has approximately $1.5 billion in Bitcoin reserves (52,600 BTC). According to analysts, if the company's BTC holdings were consolidated into a single container, it would be the thirteenth-largest BTC holder in the world.

Tether Intelligently Opted To Hold Profits In Bitcoin

Paolo Ardoino debunked the rumor that in the first quarter of 2023, Tether amassed a large quantity of BTC tokens. He refuted this notion by stating that the company had been purchasing BTC over many quarters.

Sam Kazemian, the chief executive officer of Frax Finance, viewed Tether's purchase of BTC as a positive and forward-thinking action. According to him, stable coin issuers such as Tether should store a portion of their proceeds in Bitcoin. Additionally, he suggested that Frax holds its profits in Ethereum but will likely invest in Bitcoin in the future.

According to Kazemian, stablecoins offer immense potential for the cryptocurrency industry. He believed that the leading stablecoin providers would be the Amazon, Google, and Apple of the new generation ushered in by cryptography.

Tether reportedly recorded greater profits in the first quarter of 2023 than PayPal, Starbucks, and Netflix, supporting the CTO's opinion. In addition, the company has experienced consistent profit growth since March of last year.

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According to data compiled as of March 31, Tether held over $53 billion in United States Treasury bills. This demonstrates that the company's holdings of fixed revenue have generated enormous profits.

Kazemian believes that stablecoin issuers will always be successful.

According to Kazemian, stablecoin issuers are always profitable, regardless of market recession or inflation. He stated that stablecoins increase in value when the economy is stable and interest rates are minimal. In the event of a recession and excessive interest rates, the US government compensates stablecoin issuers.

In the meantime, renowned cybersecurity expert John Stark asserted that Tether has more liquidity than declared. In support of his position, he stated that the company is not registered with the US Securities and Exchange Commission. Therefore, Tether was not required to disclose all of its assets when it disclosed its BTC holdings.

Although the issuer of the USDT stablecoin appears to be excelling and dominating the stablecoin market, it still confronts a number of legal challenges. In 2021, for example, the CFTC (Commodity Futures Trading Commission) fined Tether $41 million for misrepresenting the status of its USDT reserves.

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In addition, the Wall Street Journal claimed that some firms that supported Tether accessed bank accounts using forged credentials and subsidiary companies. Nevertheless, the company appears to withstand all legal battles as it continues to expand significantly in the cryptocurrency industry.