JUST IN: $82 billion stable coin issuer Tether to regularly allocate up to 15% of its operating profits towards purchasing #Bitcoin 🙌
Discussion
From Paolo
Transparency is king.
Tether today has 2.5B+ USD (equivalent) in company own excess reserves.
What company own excess reserves mean?
It means that Tether, on top of the 100% reserves necessary to back issued tokens, has currently 2.5B+ USD (equivalent) more. This accounts to ~3% additional value on top of the minimum 100% reserves.
These excess reserves have been accrued through interest rates on our massive US t-bill portfolio and other investments (gold, ...).
Why does Tether keep excess reserves in the portfolio?
While these excess reserves are part of Tether own shareholder equity, Tether prefers to give priority to ensuring that its stablecoin products as resilient as possible. While banks can do fractional reserve, we believe that's not a viable strategy for a stablecoin, so it's crucial that Tether keeps an additional cushion to further protect its user base.
From the latest attestation (dated 2023-03-31), Tether has confirmed that it held already ~2% of its portfolio in #bitcoin .
Today @Tether_to announces its commitment to use up to 15% of its newly monthly net operating profits (ie. accounting the realized dollarized profits coming from t-bill and similar investments) to purchase #bitcoin as part of its excess reserves.
The total value of Bitcoin kept in the portfolio is currently well below our own excess reserves (~1.5B vs 2.5B), and our aim is to continue in the same direction, since only up to 15% of net operating profits will be used for these continuous Bitcoin purchases.
Why #bitcoin and not something else?
Because Bitcoin is the epitome of a sound and secure monetary system with its decentralized nature and scarcity, Bitcoin is revolutionizing the concept of money and challenging traditional finance.
Bitcoin has defied expectations, shattered boundaries, and provides access to the global financial system to anyone with an internet connection.
From Paolo
Transparency is king.
Tether today has 2.5B+ USD (equivalent) in company own excess reserves.
What company own excess reserves mean?
It means that Tether, on top of the 100% reserves necessary to back issued tokens, has currently 2.5B+ USD (equivalent) more. This accounts to ~3% additional value on top of the minimum 100% reserves.
These excess reserves have been accrued through interest rates on our massive US t-bill portfolio and other investments (gold, ...).
Why does Tether keep excess reserves in the portfolio?
While these excess reserves are part of Tether own shareholder equity, Tether prefers to give priority to ensuring that its stablecoin products as resilient as possible. While banks can do fractional reserve, we believe that's not a viable strategy for a stablecoin, so it's crucial that Tether keeps an additional cushion to further protect its user base.
From the latest attestation (dated 2023-03-31), Tether has confirmed that it held already ~2% of its portfolio in #bitcoin .
Today @Tether_to announces its commitment to use up to 15% of its newly monthly net operating profits (ie. accounting the realized dollarized profits coming from t-bill and similar investments) to purchase #bitcoin as part of its excess reserves.
The total value of Bitcoin kept in the portfolio is currently well below our own excess reserves (~1.5B vs 2.5B), and our aim is to continue in the same direction, since only up to 15% of net operating profits will be used for these continuous Bitcoin purchases.
Why #bitcoin and not something else?
Because Bitcoin is the epitome of a sound and secure monetary system with its decentralized nature and scarcity, Bitcoin is revolutionizing the concept of money and challenging traditional finance.
Bitcoin has defied expectations, shattered boundaries, and provides access to the global financial system to anyone with an internet connection.
Just in. Other people provide sources.
Luna、FTT崩盘事件说明急功近利地靠金融杠杆和花里胡哨的Defi炒币行为，很难长期从未来比特币巨大涨幅中获利。
无论是机构还是个人，拿住私钥，才算是拿住比特币。
市场会从过去中汲取教训，一旦更多人理解比特币是反杠杆、反利息的全新财富形式的时候，比特币很快会改变传统Pos金融游戏规则。
比特币代表着财富的能量表现形式，必然会扭曲传统资产组合结构，最终低能量密度的资产会不可避免地向比特币引力源方向坠落。