Tether to buy Bitcoin based on monthly net profits

[Woodie]

Tether was a successful company right from the beginning I don't know why they now decide to come out in the public to announced it

Maybe because their profit margins are currently so small especially being a stablecoin and are trying to tap in a much bigger pool to try make real profits without boundaries  which is possible by investing in BTC...and this is a win for bitcoin as this translates into demand and a push of price.

About being successful not so sure about that, I know there is a saying that money is never enough but why would they want to expand  their portfolio to other crypto coins ??

[_act_]

if usdt collapses maybe it will make the Bitcoin price will decrease just like when Luna/TUSD collapsed i saw Bitcoin prices slowly decrease from 39.6k$ to the lowest price 26.7k$ and until now it still recovering.

If bitcoin price decrease, those that thought bitcoin is too expensive would be encouraged to buy at that time, so it is not a disadvantage. And as we know, Do Kwon purchased $10 billion worth of bitcoin at the time, which is not a small amount of bitcoin.

People thought USDT would have collapsed since, but nothing happened till now. USDT is backed mostly by fiat and little by bitcoin, there is no problem as I see Tether Limited to be wise over their decision.

[livingfree]

If they are thinking to increase their BTC reserves it's great but it is again alarming for us because it will lead to more volatility in the market if any fud occurs similar to the LUNA.

Honestly, this is what I'm thinking. Since Luna is also associated to Terra/USTC, I am having that feeling that this could also lead to the same thing as them but it could also be entirely different.

I know that Tether is big and I've got the same feeling on what happened in the past could really lead them to it. It sounds exciting and easy since they're buying Bitcoin. Who knows if it'll be a success and we'll just have to wait what will happen but hopefully, it will be the opposite and it'll result good for them and best for Bitcoin.

Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.

Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.

Yeah, it was just a first thought after reading that they'll do the same strategy of buying Bitcoin on a monthly basis.

Well, despite with the past controversies of Tether and still being the most used stable coins. They can sustain any venture they may come up with just like this.

As we're anticipating the possible result of this for Bitcoin is gonna be positive.

[kryptqnick]

2% isn't a lot, but can we really know whether the figure is true? I don't believe they really back up all their USDT with something like fiat cash and other meaningful things. But Tether's market capitalization is nearly $82.8 billion, so I suppose they need decent reserves to keep the coin afloat, and $1.5 billion worth of Bitcoin isn't a big share of that. Well, Bitcoin is available to anyone who's willing to invest, regardless of their faith in Bitcoin or intentions. If they want to buy more, it's a very abstract notion. If they announced a multi-billion-dollar investment, that could give a boost to the price.

[entebah]

2% isn't a lot, but can we really know whether the figure is true? I don't believe they really back up all their USDT with something like fiat cash and other meaningful things. But Tether's market capitalization is nearly $82.8 billion, so I suppose they need decent reserves to keep the coin afloat, and $1.5 billion worth of Bitcoin isn't a big share of that. Well, Bitcoin is available to anyone who's willing to invest, regardless of their faith in Bitcoin or intentions. If they want to buy more, it's a very abstract notion. If they announced a multi-billion-dollar investment, that could give a boost to the price.

i just read Tether from an independent account report on their website https://tether.to/en/transparency/#reports it shows that they have 84.7% in Cash & Cash Equivalents & Other Short-Term Deposits and 1.83% in bitcoin
below is the screenshot for all the info about where the money they have.

[Hamza2424]

Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.

Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.

That the fact people will not stop trading the stablecoins but my concern is about their pegge potential because whenever I use to visit their reserves, it always put me into a new curiosity that why and how they can decide to put all of their reserves (Maximum Value) in the Security Bonds, Such type of decisions can lead them towards the destruction I know many people do trust USDT but because many do should we do too. A scenario can change everything because on the centralized exchanges liquidity behaves differently if some try to manipulate it with a good amount of money they manipulate it and I am not sure how much Teather is ready for such a crisis.

LUNA's Ecosystem apparently was great but there were some in death fundamental mistakes as one of them mentioned by you, Bitcoin is another entity I know there is no one here to manipulate the total supply, but for the security bonds who knows?

[kaseygriffin]

Tether is proof that they are a big player in the cryptocurrency industry. USDT is widely used and spread across networks with high credibility and trust. So with the decision to invest in bitcoin, this will also be a benefit for BTC because, with Tether's advantage, it will bring more positive aspects such as stability as well as more demand. This radical relationship can be mutually beneficial if, once successful, bitcoin will benefit, and attention could lead many other large businesses and institutions to opt for bitcoin or other cryptocurrencies. as a reserve asset. As for Tether, it will also increase and succeed when it comes to earning a return on investment in bitcoin.

[Zlantann]

Has Tether decided to become a non-stable coin? Or is it just a business decision to power up the asset side of their book? I believe it's the second one.

If yes, it's a great decision to be taken as a business.  Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.

Tether reported about $1.5b net profits from Bitcoin investment. Their investment is not because they love Bitcoin but because they are targeting profit maximization. The firm understands the resilience and dependability of Bitcoin as an investment platform. I also feel that most investors are motivated by next year's Bitcoin halving. Tethers' announcement about its intention to keep investing in bitcoin is a piece of good news to the Bitcoin space because it is giving Bitcoin more publicly thereby increasing bitcoin awareness. I am also pleased with the sincerity of the managers of Tether. Even in the face of stiff competition between centralization and decentralization they still acknowledged the superiority of Bitcoin.

[justdimin]

One thing to learn from is that they stated that they are putting their bitcoin holding into a self-custody wallet. As a person or organization, there is nothing better than to have your keys and your coins than to depend. This means a lot to me and to people that prefer self-custody.

Tether has $1.5 billion in bitcoin. That is 2% of their total reserves. 85% of their total reserves is in cash, cash equivalents and other short-term deposits, primarily treasure bills.

https://cointelegraph.com/news/tether-to-buy-bitcoin-based-on-monthly-net-profits


Bitcoin will be a coin that people and organizations will depend on. More organizations will see that bitcoin offers value more than fiat, but they need to understand why, when and how.

I personally feel like the best thing to do at this moment is to make sure that there is absolutely nothing wrong or shady going on in their books. If they are fine with getting audited constantly then I would be fine with them doing whatever with their money. If it shows that they are doing nothing wrong then there is nothing wrong, if they are doing anything wrong then we are going to see that and that's the important thing.

I personally do not trust any stable currency as long as the company rejects the idea of getting audited by a good company and that would require it to be a lot more expensive if you keep getting that done constantly. Maybe not every month, but it has to be frequent so that we as investors would see that. We are giving them our hard earned money after all.

[vv181]

Has Tether decided to become a non-stable coin? Or is it just a business decision to power up the asset side of their book? I believe it's the second one.

If yes, it's a great decision to be taken as a business.  Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.

Tether reported about $1.5b net profits from Bitcoin investment. Their investment is not because they love Bitcoin but because they are targeting profit maximization.

Incorrect, that number is not the net profit of the bitcoins investment. It is already addressed in the article and explained in the relevant documents from Tether, that $1.5B is the bitcoins they currently have in hand.[1] In contrast, their first quartal net profit of this year is $1.48B.[2]

Referred links below also describe their reasoning for why they want to put 15% of the net realized operating profit into bitcoins. So they are not merely looking and targeting profit maximization.

[1] https://tether.to/en/tether-to-further-strengthen-reserves-through-purchase-of-bitcoin-with-realized-net-operating-profits
[2] https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations/

[dansus021]

As long tether not using it as collateral Im fine with that because last I hear Luna is using bitcoin as collateral it becoming shit and lot of people suffer from their De-pegging currency. and I do believe what tether do is not for bitcoin maximalist but for profit again since they are company and looking for profit