While many companies entrust their bitcoins to third-party custodial services, Tether tries to store the coins itself, according to the “Not your keys, not your coins” principle.
The bulk of USDT’s collateral continues to be held in short-term U.S. Treasuries.
Tether’s management assures that the company will only invest profits already recorded and not look at unrealized gains from rising prices.
“The decision to invest in the world’s first and largest cryptocurrency is based on the strength of BTC and its potential as an investment asset.
Bitcoin constantly proves its reliability and has become a real means of savings.
The number of coins is limited, bitcoin is fully decentralized and widely distributed, so it becomes the preferred choice for both institutional and retail investors.
Our investments are not just about returns on our portfolio, but about supporting technology that can change businesses and people’s lives,” explains Tether CTO Paolo Ardoino.
Tether Group reportedly invests in the energy industry, telecom operators and creators of mining infrastructure with its own capital.
For the first quarter of 2023, Tether posted a net profit of $1.48 billion.