Tether to buy Bitcoin based on monthly net profits

[_act_]

Just like Microstrategy, tether is planing to be investing more on bitcoin. But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.

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.

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[Edwardard]

Just like Microstrategy, tether is planing to be investing more on bitcoin.

Lol, I think tether is the one investing in bitcoin since the company's birth. They are the real OG.

But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.

You know whenever tether prints usdt, bitcoin pumps later. Why? They print and buy everytime. Its just that they dont make their strategy public.

[tbct_mt2]

Just like Microstrategy, tether is planing to be investing more on bitcoin. But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.

They are smart to use their stable coin for buying Bitcoin. Storing stable coin does not help them richer but Tether are not Bitcoin Maximalist. They are a stable coin company and Bitcoin is only one of assets in their treasury.

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.

According to Bitcoin Treasuries, Tether are holding about 52,673 BTC which is $1.4B equivalent.

When Tether was in fud attacks months ago because of massive panic around stable coins, they released a very good report and if it was cooked, they would collapse already, not be fine like they are now.

[Doan9269]

Just like Microstrategy, tether is planing to be investing more on bitcoin. But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.

One thing i also believe is that not only tether is into this, there are many other companies and organizations that do buy and hodl bitcoin consistently without us knowing as long as they are not making noise about it, this are investors that don't only rely on their own coin, they uses other's invest with them to secure a guaranteed asset with bitcoin in case of times of uncertainties.

One thing to learn from is that they stated that they are putting their bitcoin holding into a self-custody wallet.

They all invest with bitcoin and have their coin in their personal wallet while their own investors will have theirs with them, what an irony.

[Hamza2424]

My views on the tether are very strong and this is one of the most shady stablecoin projects ever. Be careful whoever is holding a decent amount in this coin because this many times reminded you that the next major crisis is gonna be related to the tether. As most of the reserves are on equities and bonds whatever they call it short-term or whatever but they can't provide enough liquidity on the spot if USDT gets de-pegged and that's gonna be a great disaster again.

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. If any fud occurs and USDT gets de-pegged for the liquidity team will sell out Bitcoin as LUNA's team did and that will lead more market volatility.

There are a few key features of Tether;

♣ Lack of Transperency.
♣ Unconfident Reserves.
♣ Regulatory Risks.
♣ Counter Party Risks.
♣ Uncofident Supply (Token Printing).

[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.

[_act_]

Just like Microstrategy, tether is planing to be investing more on bitcoin.

Lol, I think tether is the one investing in bitcoin since the company's birth. They are the real OG.

This should not cause an argument, I did not say that tether is not investing in bitcoin. I am only indicating how they get more preference for bitcoin. That is why I compare tether to microstrategy. I also stated that they hold $1.5 bitcoin.

In an announcement on May 17, Tether revealed that it plans to invest a portion of its profits into BTC on a monthly basis. The firm said it will “regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin.”

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.

The problem with Luna was that he made UST to be an algorithmic stable coin. The way both stable coin works are different. What you can compare with USDT is USDC. See what happened to USDC recently as it depegged, but later increased back to normal price. Tether still have 85% of his asset as fiat. The second problem of Luna was the team behind the project and how Luna falled, not even bitcoin.

[Z390]

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, something that has been going on for a very long time now, to me, its not a new news at all.

How can a company as big as Tether keep all those juicy gains with them all this while and not invest in Bitcoin? It makes no sense.

What I don't want to hear about Tether company is that they come up with an idea to build something for crypto space, maybe a metaverse project or a layer 1 project, I will stop using usdt at that time because anything can happen.

There might come a time where they will announce a bankruptcy,  and that will bring the whole market down, Tether USDt should stayed Tether USDt, please lol.

[avikz]

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.

[Onset]

I partially agree with almost everyone on this page. It’s a great business idea and strategy to keep purchasing Bitcoin. But it’s weird how a company who prints money gets to invest in things. Even if the reserves are fully backed, still very weird to think about it.

And finally, the FUD thing is very real. If USDT collapses, Bitcoin will suffer tremendously if a lot of Tether’s reserves are in BTC. On the other hand.. in Bitcoin’s history, except the very last bear run, there’s no downturn it’s never recovered from.

[entebah]

finally, the FUD thing is very real. If USDT collapses, Bitcoin will suffer tremendously if a lot of Tether’s reserves are in BTC. On the other hand.. in Bitcoin’s history, except the very last bear run, there’s no downturn it’s never recovered from.

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.

[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.

The problem with Luna was that he made UST to be an algorithmic stable coin. The way both stable coin works are different. What you can compare with USDT is USDC. See what happened to USDC recently as it depegged, but later increased back to normal price. Tether still have 85% of his asset as fiat. The second problem of Luna was the team behind the project and how Luna falled, not even bitcoin.

I think I have compared it because they did the same of investing in Bitcoin and didn't managed it properly so it fell. But yeah, you're right it's all about the team.

While Luna and UST's management have really something into their minds to do some dirty work then Tether has proven themselves that they've got reserves.

Anyway, that's just all what I've thought of and hopefully this would encourage others to focus and buy Bitcoin. Whether they're an enterprise or just an individual who still thinks whether to buy Bitcoin or not.

[joniboini]

How do we verify if they really use their monthly profits to buy BTC? Even if that is true, I don't think it will change anything in regard to the BTC price if that's what we're worried about. I do believe they already did this. This move is probably to provide other ways to answer scrutiny if there are some questions about their reserves in the future.

And finally, the FUD thing is very real. If USDT collapses, Bitcoin will suffer tremendously if a lot of Tether’s reserves are in BTC. On the other hand.. in Bitcoin’s history, except the very last bear run, there’s no downturn it’s never recovered from.

If their documents are to be trusted, most of their reserves are in cash at the time of writing. I don't think they will switch to BTC or other assets entirely since it is easier to get tracked by others. But yeah, people can easily get swayed by rumors on this market so it would be difficult to avoid the impact if they do (nearly) collapse.

[TravelMug]

Just like Microstrategy, tether is planing to be investing more on bitcoin.

Lol, I think tether is the one investing in bitcoin since the company's birth. They are the real OG.

But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.

You know whenever tether prints usdt, bitcoin pumps later. Why? They print and buy everytime. Its just that they dont make their strategy public.

Yes, probably since their involvement in crypto, they could have been putting their reserves into bitcoin. And I'm thinking this could be one reasons why in the beginning they are not opening their books to the public.

"We had already agreed to produce documents sufficient to establish the reserves backing USDT, and this dispute merely concerned the scope of documents to be produced. As always, we look forward to dispensing with plaintiffs' baseless lawsuit in due course."

https://cointelegraph.com/news/tether-says-new-court-order-to-produce-usdt-reserve-backing-is-a-routine-discovery-matter

So in any case this could be good for this image though, (although for sure there could be some here that will not agree with that).

[GreatArkansas]

For me, this decision from the Tether team is good for Bitcoin itself as it can be possible for Bitcoin to rise in demand and may result in a price increase for Bitcoin and it might contribute to the legitimacy of Bitcoin and increase its appeal to institutional investors.
Once Tether will prove that this action is effective, I believe that there will be a lot of other companies will follow.

[tbct_mt2]

How do we verify if they really use their monthly profits to buy BTC? Even if that is true, I don't think it will change anything in regard to the BTC price if that's what we're worried about. I do believe they already did this. This move is probably to provide other ways to answer scrutiny if there are some questions about their reserves in the future.

Their capital flows (if it will) into Bitcoin market will be only small part of all capital in the market. It will potentially create FOMO in short term but its FOMO effect won't last too long. It won't create big change in the market in either trading volume or total capital in it. Tether will become a bigger institutional investor in Bitcoin.

If their documents are to be trusted, most of their reserves are in cash at the time of writing.

Their reserves mostly are in cash and gold if their report was not cooked to disguise us.

I don't think they will switch to BTC or other assets entirely since it is easier to get tracked by others. But yeah, people can easily get swayed by rumors on this market so it would be difficult to avoid the impact if they do (nearly) collapse.

If they make such switch, their stable coin will no longer a stable coin as it will be backed by unstable coin (Bitcoin).

[Darker45]

No big deal. Tether buying more Bitcoin isn't really news. They're expected to do that. And forget about whether Tether is a Bitcoin maximalist or not. It is an altcoin, in the first place. It is built on Ethereum. They also issue USDT on the Tron network. And they also issued Tether Gold (XAUT). They hold precious metals more than they hold Bitcoin. So it's not surprising that they have finally decided to add more Bitcoin to their portfolio. But this is not yet happening. We'll see how much more Bitcoin they will buy.

[Coin_trader]

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.

[Husires]

We all know that Tether only makes promises, so increasing their investment in Bitcoin only means that they plan to obtain more loans to misuse the money, as covering 85% of its total reserves is cash and US Treasury bonds is a claim that has not been validated, and thus the increase in the possession of Bitcoin Their hand will not solve the problem or enhance trust or transparency.

The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.

[davis196]

Tether might decide to increase the BTC in their portfolio from 2% up to 4% or 5%. So what? This isn't such a big deal.
I don't know why we should be paying attention to such insignificant news. As if Tether would want buy more Bitcoins and boost the BTC in their portfolio up to 20% or 50%(which will make them a volatile coin, instead of a stablecoin).
I'm not familiar with Tether's financial results, but I don't think that their monthly net profits are that big.

We all know that Tether only makes promises, so increasing their investment in Bitcoin only means that they plan to obtain more loans to misuse the money, as covering 85% of its total reserves is cash and US Treasury bonds is a claim that has not been validated, and thus the increase in the possession of Bitcoin Their hand will not solve the problem or enhance trust or transparency.

The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.

We all know that Tether uses the "fractional reserve" principle, but we can't prove this with valid evidence.
On the other hand, I don't think that Tether would "obtain more loans" in order to buy more Bitcoin/crypto. This is extremely risky and it will basically destroy their business model. Tether's entire concept and business model is based on safety and security, not on taking higher risks.