Starting this month, Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin. These Bitcoin shall be considered on top of the minimum reserves assets that 100% back tether tokens.
USG is paying Tether to buy #bitcoin
this the same shit Luna was saying? or is this real?
There is a difference. Tether buying #bitcoin with 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, ...).
