Tether CEO Reveals Strategy to Diversify Investments with Bitcoin and Gold

Tether, the world's largest stablecoin issuer, is evolving its business model under the leadership of CEO Paolo Ardoino. The company is transitioning from merely issuing digital dollars to adopting a strategy akin to that of a sovereign wealth fund. This new approach involves distributing dollars globally while accumulating significant reserves of Bitcoin and physical gold.

Tether has been purchasing between 1 and 2 tons of gold weekly, which could amount to approximately 140 tons valued at around $23-24 billion over several months. Ardoino has indicated that the company aims for gold to represent about 10-15% of its investment portfolio, funded by profits from Tether's core operations rather than by minting more USDT. Tether's earnings are projected to reach between $10 billion and $13.7 billion for 2024 and 2025, with expectations for even higher profits in 2026.

In addition to gold, Tether has allocated up to 15% of its realized operating profits to Bitcoin since May 2023, building a treasury of approximately 83,000 to 100,000 BTC, valued at over $8 billion. Ardoino describes Bitcoin as a crucial hedge against inflation and potential economic turmoil. Together, gold and Bitcoin are expected to constitute about 20-25% of Tether's total reserves, which primarily consist of US Treasuries and cash equivalents.

With $186 billion in circulation, Tether's USDT serves as a vital financial tool in emerging markets across Latin America, Africa, and Southeast Asia, where it functions as both a savings vehicle and a payment method. The company has also launched Tether Gold (XAUT), a tokenized gold product, which could further enhance its revenue through appreciation and tokenization fees. Tether's strategic investments and hiring of experienced traders from major banks are positioning the company as a significant player in both the cryptocurrency and traditional financial markets.

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Source: KLEA News