Tether Strengthens Its Position with Gold and Bitcoin Investments
Tether’s Dual Investment Approach: Gold and Bitcoin
Paolo Ardoino, the CEO of Tether, has announced that the company is expanding its investments in gold while maintaining its commitment to Bitcoin. This diversified strategy is part of Tether’s approach to solidifying its reserve assets, contrary to rumors suggesting a shift away from Bitcoin.
Investment Strategy: Balancing Gold and Bitcoin
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In a recent interview with Reuters, Ardoino confirmed that Tether plans to allocate around 10% of its portfolio to Bitcoin and between 10% to 15% to gold. This allocation highlights Tether’s commitment to using gold not just as a reserve for its USDT stablecoin but also to support its XAUT gold token, which boasts a market capitalization of $2.6 billion.
Tether’s Expanding Gold Reserves
According to Bloomberg, Tether’s gold reserves amount to approximately 140 tons, valued at an impressive $24 billion. This positions Tether as a leading entity in gold holdings, surpassing several national reserves. Their gold acquisition strategy involves purchasing one to two tons weekly, equating to about $1 billion in monthly acquisitions. Despite this focus on gold, Tether remains steadfast in its Bitcoin investments.
Continued Bitcoin Commitment
In the last quarter of the previous year, Tether purchased 8,888 Bitcoins, valued at roughly $779 million. The company’s total Bitcoin holdings now stand at 96,370 BTC, equivalent to $8.46 billion. This positions Tether as the second-largest corporate Bitcoin holder, following closely behind Michael Saylor’s Strategy.
Long-Term Vision: Tether’s Gold Market Influence
In a conversation with Bloomberg, Ardoino likened Tether’s growing influence in the gold market to that of a central bank. Tether’s strategic vision includes not just holding gold but actively trading it, aiming to outperform banks in gold trading. This ambition comes amidst gold reaching unprecedented highs, while Bitcoin trails slightly.
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