Tether plans to allocate up to 15% of its net realized operating profits towards Bitcoin (BTC) purchases, aiming to further strengthen and diversify its reserves without exceeding the Shareholder Capital Cushion.
As of March 2023, Tether held approximately $1.5 billion in $BTC in its reserves. The company maintains full possession of private keys associated with its Bitcoin holdings, following the principle of "Not your keys, not your bitcoin."
Tether's new approach focuses on utilizing realized profits from its investment strategy, disregarding unrealized capital gains generated by price increases. The company will only consider tangible gains from its operations.
This commitment to purchasing Bitcoin is part of Tether's conservative and prudent investment approach, seeking to enhance transparency and provide a clearer view of the company's performance and capital allocation strategy.