“Tether CEO Chooses Bitcoin Over Ethereum, Citing Immutable and Limited Supply Features”
In an unexpected move, Tether CEO Paolo Ardoino took to social media to express his preference for Bitcoin over Ethereum when it comes to allocating funds. Ardoino highlighted Bitcoin’s immutability and limited supply as the key factors behind his choice, stating, “Bitcoin is immutable. Only 21 million coins. Easy choice.”
This decision marks a departure from Tether’s previous commitment to allocate a portion of its profits to Ethereum, the second-largest cryptocurrency by market cap. Last year, Tether announced plans to allocate 15% of its profits towards purchasing Bitcoin, aiming to diversify its reserves and benefit from the potential long-term growth of the leading cryptocurrency.
However, Tether’s most recent quarterly report showed that its Bitcoin reserves remained unchanged, despite recording a staggering net profit of $1.3 billion. Ardoino later clarified that the stablecoin issuer did acquire Bitcoin through its investment arm in 2024.
In his social media post, Ardoino also highlighted Ethereum’s weak performance against Bitcoin in recent years. He pointed out that the ETH/BTC pair has experienced a 45% decline since reaching its peak at 0.088 in December 2021.
While Tether’s decision to focus on Bitcoin may come as a surprise to some, Ardoino’s rationale of choosing a cryptocurrency with immutable properties and a limited supply reflects the growing importance of these qualities in the evolving digital currency landscape.