Tether's latest reserve strategy plan involves using monthly profits to continuously purchase Bitcoin.

The leading stablecoin issuer Tether has announced its latest reserve strategy plan, starting from May, to regularly allocate up to 15% of realized net operating profits to purchase Bitcoin, further strengthening reserves and diversifying holdings.

Tether's March Reserve Report Holds $1.5 Billion in Bitcoin

In its latest reserve report for March, Tether revealed for the first time a detailed breakdown of its reserves in Bitcoin and precious metals. It holds $1.5 billion worth of Bitcoin and $3.3 billion worth of precious metals, specifically gold.

For more insights on the recent reserve report analysis, please refer to: Tether's Latest Audit Report Reveals Bitcoin and Gold Reserves, Significantly Reducing Bank Exposure.

Tether to Purchase Bitcoin Monthly

Starting from May, Tether announced that it will allocate up to 15% of realized net operating profits, such as realized U.S. dollar gains from treasury bills, to purchase Bitcoin each month. Tether expects that the current and future Bitcoin holdings in its reserves will not exceed shareholder capital buffers, which according to its March figures stand at $2.44 billion. Tether stated that buying Bitcoin is part of its conservative and prudent investment strategy aimed at strengthening, increasing, and diversifying its reserves. Through this framework, Tether aims to enhance transparency and provide a clearer picture of its corporate performance and capital allocation strategy.

Based on the earnings of $1.48 billion announced by Tether in the first quarter, the company will be able to purchase approximately $74 million worth of Bitcoin each month. It has now surpassed Galaxy Digital, the second-largest company holding Bitcoin on the list, and is steadily approaching the top position held by MicroStrategy.

Tether to Self-Custody Bitcoin

Regarding the issue of Bitcoin custody, Tether mentioned that while third-party custody is a common practice for many institutional investors, Tether believes in the principle of "not your keys, not your Bitcoin" and will self-custody all private keys related to its Bitcoin assets.

Tether's CTO, Paolo Ardoino, stated:

The decentralization and scarcity of Bitcoin epitomize a sound and secure monetary system. Bitcoin is revolutionizing the concept of currency and challenging traditional finance. Our investment in Bitcoin is not only a way to enhance our portfolio performance but also a means to align ourselves with transformative technology that could reshape the way we conduct business and live our lives.