Topic: Tether to buy Bitcoin based on monthly net profits (Read 247 times)
As long tether not using it as collateral Im fine with that because last I hear Luna is using bitcoin as collateral it becoming shit and lot of people suffer from their De-pegging currency. and I do believe what tether do is not for bitcoin maximalist but for profit again since they are company and looking for profit
Has Tether decided to become a non-stable coin? Or is it just a business decision to power up the asset side of their book? I believe it's the second one.
If yes, it's a great decision to be taken as a business. Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.
Tether reported about $1.5b net profits from Bitcoin investment. Their investment is not because they love Bitcoin but because they are targeting profit maximization.If yes, it's a great decision to be taken as a business. Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.
Incorrect, that number is not the net profit of the bitcoins investment. It is already addressed in the article and explained in the relevant documents from Tether, that $1.5B is the bitcoins they currently have in hand.[1] In contrast, their first quartal net profit of this year is $1.48B.[2]
Referred links below also describe their reasoning for why they want to put 15% of the net realized operating profit into bitcoins. So they are not merely looking and targeting profit maximization.
[1] https://tether.to/en/tether-to-further-strengthen-reserves-through-purchase-of-bitcoin-with-realized-net-operating-profits
[2] https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations/
One thing to learn from is that they stated that they are putting their bitcoin holding into a self-custody wallet. As a person or organization, there is nothing better than to have your keys and your coins than to depend. This means a lot to me and to people that prefer self-custody.
Tether has $1.5 billion in bitcoin. That is 2% of their total reserves. 85% of their total reserves is in cash, cash equivalents and other short-term deposits, primarily treasure bills.
https://cointelegraph.com/news/tether-to-buy-bitcoin-based-on-monthly-net-profits
Bitcoin will be a coin that people and organizations will depend on. More organizations will see that bitcoin offers value more than fiat, but they need to understand why, when and how.
I personally feel like the best thing to do at this moment is to make sure that there is absolutely nothing wrong or shady going on in their books. If they are fine with getting audited constantly then I would be fine with them doing whatever with their money. If it shows that they are doing nothing wrong then there is nothing wrong, if they are doing anything wrong then we are going to see that and that's the important thing.Tether has $1.5 billion in bitcoin. That is 2% of their total reserves. 85% of their total reserves is in cash, cash equivalents and other short-term deposits, primarily treasure bills.
https://cointelegraph.com/news/tether-to-buy-bitcoin-based-on-monthly-net-profits
Bitcoin will be a coin that people and organizations will depend on. More organizations will see that bitcoin offers value more than fiat, but they need to understand why, when and how.
I personally do not trust any stable currency as long as the company rejects the idea of getting audited by a good company and that would require it to be a lot more expensive if you keep getting that done constantly. Maybe not every month, but it has to be frequent so that we as investors would see that. We are giving them our hard earned money after all.
Has Tether decided to become a non-stable coin? Or is it just a business decision to power up the asset side of their book? I believe it's the second one.
If yes, it's a great decision to be taken as a business. Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.
Tether reported about $1.5b net profits from Bitcoin investment. Their investment is not because they love Bitcoin but because they are targeting profit maximization. The firm understands the resilience and dependability of Bitcoin as an investment platform. I also feel that most investors are motivated by next year's Bitcoin halving. Tethers' announcement about its intention to keep investing in bitcoin is a piece of good news to the Bitcoin space because it is giving Bitcoin more publicly thereby increasing bitcoin awareness. I am also pleased with the sincerity of the managers of Tether. Even in the face of stiff competition between centralization and decentralization they still acknowledged the superiority of Bitcoin. If yes, it's a great decision to be taken as a business. Microstrategy is definitely way more bullish on bitcoin than anyone else. But this Kind of approach that Tether is taking makes sense. They will be able to average out their purchase cost by spreading out their purchases. Good news for the market as well.
Tether is proof that they are a big player in the cryptocurrency industry. USDT is widely used and spread across networks with high credibility and trust. So with the decision to invest in bitcoin, this will also be a benefit for BTC because, with Tether's advantage, it will bring more positive aspects such as stability as well as more demand. This radical relationship can be mutually beneficial if, once successful, bitcoin will benefit, and attention could lead many other large businesses and institutions to opt for bitcoin or other cryptocurrencies. as a reserve asset. As for Tether, it will also increase and succeed when it comes to earning a return on investment in bitcoin.
Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.
Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.
Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.
That the fact people will not stop trading the stablecoins but my concern is about their pegge potential because whenever I use to visit their reserves, it always put me into a new curiosity that why and how they can decide to put all of their reserves (Maximum Value) in the Security Bonds, Such type of decisions can lead them towards the destruction I know many people do trust USDT but because many do should we do too. A scenario can change everything because on the centralized exchanges liquidity behaves differently if some try to manipulate it with a good amount of money they manipulate it and I am not sure how much Teather is ready for such a crisis.
LUNA's Ecosystem apparently was great but there were some in death fundamental mistakes as one of them mentioned by you, Bitcoin is another entity I know there is no one here to manipulate the total supply, but for the security bonds who knows?
2% isn't a lot, but can we really know whether the figure is true? I don't believe they really back up all their USDT with something like fiat cash and other meaningful things. But Tether's market capitalization is nearly $82.8 billion, so I suppose they need decent reserves to keep the coin afloat, and $1.5 billion worth of Bitcoin isn't a big share of that. Well, Bitcoin is available to anyone who's willing to invest, regardless of their faith in Bitcoin or intentions. If they want to buy more, it's a very abstract notion. If they announced a multi-billion-dollar investment, that could give a boost to the price.
i just read Tether from an independent account report on their website https://tether.to/en/transparency/#reports it shows that they have 84.7% in Cash & Cash Equivalents & Other Short-Term Deposits and 1.83% in bitcoin
below is the screenshot for all the info about where the money they have.
2% isn't a lot, but can we really know whether the figure is true? I don't believe they really back up all their USDT with something like fiat cash and other meaningful things. But Tether's market capitalization is nearly $82.8 billion, so I suppose they need decent reserves to keep the coin afloat, and $1.5 billion worth of Bitcoin isn't a big share of that. Well, Bitcoin is available to anyone who's willing to invest, regardless of their faith in Bitcoin or intentions. If they want to buy more, it's a very abstract notion. If they announced a multi-billion-dollar investment, that could give a boost to the price.
If they are thinking to increase their BTC reserves it's great but it is again alarming for us because it will lead to more volatility in the market if any fud occurs similar to the LUNA.
Honestly, this is what I'm thinking. Since Luna is also associated to Terra/USTC, I am having that feeling that this could also lead to the same thing as them but it could also be entirely different.I know that Tether is big and I've got the same feeling on what happened in the past could really lead them to it. It sounds exciting and easy since they're buying Bitcoin. Who knows if it'll be a success and we'll just have to wait what will happen but hopefully, it will be the opposite and it'll result good for them and best for Bitcoin.
Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.
Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.
Well, despite with the past controversies of Tether and still being the most used stable coins. They can sustain any venture they may come up with just like this.
As we're anticipating the possible result of this for Bitcoin is gonna be positive.
if usdt collapses maybe it will make the Bitcoin price will decrease just like when Luna/TUSD collapsed i saw Bitcoin prices slowly decrease from 39.6k$ to the lowest price 26.7k$ and until now it still recovering.
If bitcoin price decrease, those that thought bitcoin is too expensive would be encouraged to buy at that time, so it is not a disadvantage. And as we know, Do Kwon purchased $10 billion worth of bitcoin at the time, which is not a small amount of bitcoin. People thought USDT would have collapsed since, but nothing happened till now. USDT is backed mostly by fiat and little by bitcoin, there is no problem as I see Tether Limited to be wise over their decision.
Tether was a successful company right from the beginning I don't know why they now decide to come out in the public to announced it
Maybe because their profit margins are currently so small especially being a stablecoin and are trying to tap in a much bigger pool to try make real profits without boundaries which is possible by investing in BTC...and this is a win for bitcoin as this translates into demand and a push of price.About being successful not so sure about that, I know there is a saying that money is never enough but why would they want to expand their portfolio to other crypto coins ??
Tether might decide to increase the BTC in their portfolio from 2% up to 4% or 5%. So what? This isn't such a big deal.
I don't know why we should be paying attention to such insignificant news. As if Tether would want buy more Bitcoins and boost the BTC in their portfolio up to 20% or 50%(which will make them a volatile coin, instead of a stablecoin).
I'm not familiar with Tether's financial results, but I don't think that their monthly net profits are that big.
We all know that Tether uses the "fractional reserve" principle, but we can't prove this with valid evidence.
On the other hand, I don't think that Tether would "obtain more loans" in order to buy more Bitcoin/crypto. This is extremely risky and it will basically destroy their business model. Tether's entire concept and business model is based on safety and security, not on taking higher risks.
I don't know why we should be paying attention to such insignificant news. As if Tether would want buy more Bitcoins and boost the BTC in their portfolio up to 20% or 50%(which will make them a volatile coin, instead of a stablecoin).
I'm not familiar with Tether's financial results, but I don't think that their monthly net profits are that big.
We all know that Tether only makes promises, so increasing their investment in Bitcoin only means that they plan to obtain more loans to misuse the money, as covering 85% of its total reserves is cash and US Treasury bonds is a claim that has not been validated, and thus the increase in the possession of Bitcoin Their hand will not solve the problem or enhance trust or transparency.
The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.
The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.
We all know that Tether uses the "fractional reserve" principle, but we can't prove this with valid evidence.
On the other hand, I don't think that Tether would "obtain more loans" in order to buy more Bitcoin/crypto. This is extremely risky and it will basically destroy their business model. Tether's entire concept and business model is based on safety and security, not on taking higher risks.
We all know that Tether only makes promises, so increasing their investment in Bitcoin only means that they plan to obtain more loans to misuse the money, as covering 85% of its total reserves is cash and US Treasury bonds is a claim that has not been validated, and thus the increase in the possession of Bitcoin Their hand will not solve the problem or enhance trust or transparency.
The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.
The increase in these crazy ideas means that we will see an explosion like Luna V2 soon.
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If they are thinking to increase their BTC reserves it's great but it is again alarming for us because it will lead to more volatility in the market if any fud occurs similar to the LUNA.
Honestly, this is what I'm thinking. Since Luna is also associated to Terra/USTC, I am having that feeling that this could also lead to the same thing as them but it could also be entirely different.I know that Tether is big and I've got the same feeling on what happened in the past could really lead them to it. It sounds exciting and easy since they're buying Bitcoin. Who knows if it'll be a success and we'll just have to wait what will happen but hopefully, it will be the opposite and it'll result good for them and best for Bitcoin.
Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.
Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.
No big deal. Tether buying more Bitcoin isn't really news. They're expected to do that. And forget about whether Tether is a Bitcoin maximalist or not. It is an altcoin, in the first place. It is built on Ethereum. They also issue USDT on the Tron network. And they also issued Tether Gold (XAUT). They hold precious metals more than they hold Bitcoin. So it's not surprising that they have finally decided to add more Bitcoin to their portfolio. But this is not yet happening. We'll see how much more Bitcoin they will buy.
How do we verify if they really use their monthly profits to buy BTC? Even if that is true, I don't think it will change anything in regard to the BTC price if that's what we're worried about. I do believe they already did this. This move is probably to provide other ways to answer scrutiny if there are some questions about their reserves in the future.
Their capital flows (if it will) into Bitcoin market will be only small part of all capital in the market. It will potentially create FOMO in short term but its FOMO effect won't last too long. It won't create big change in the market in either trading volume or total capital in it. Tether will become a bigger institutional investor in Bitcoin.Quote
If their documents are to be trusted, most of their reserves are in cash at the time of writing.
Their reserves mostly are in cash and gold if their report was not cooked to disguise us.Quote
I don't think they will switch to BTC or other assets entirely since it is easier to get tracked by others. But yeah, people can easily get swayed by rumors on this market so it would be difficult to avoid the impact if they do (nearly) collapse.
If they make such switch, their stable coin will no longer a stable coin as it will be backed by unstable coin (Bitcoin). 
For me, this decision from the Tether team is good for Bitcoin itself as it can be possible for Bitcoin to rise in demand and may result in a price increase for Bitcoin and it might contribute to the legitimacy of Bitcoin and increase its appeal to institutional investors.
Once Tether will prove that this action is effective, I believe that there will be a lot of other companies will follow.
Once Tether will prove that this action is effective, I believe that there will be a lot of other companies will follow.
Just like Microstrategy, tether is planing to be investing more on bitcoin.
Lol, I think tether is the one investing in bitcoin since the company's birth. They are the real OG. But unlike Microstrategy, we do not know how bitcoin maximalist they are yet.
You know whenever tether prints usdt, bitcoin pumps later. Why? They print and buy everytime. Its just that they dont make their strategy public.Yes, probably since their involvement in crypto, they could have been putting their reserves into bitcoin. And I'm thinking this could be one reasons why in the beginning they are not opening their books to the public.
Quote
"We had already agreed to produce documents sufficient to establish the reserves backing USDT, and this dispute merely concerned the scope of documents to be produced. As always, we look forward to dispensing with plaintiffs' baseless lawsuit in due course."
https://cointelegraph.com/news/tether-says-new-court-order-to-produce-usdt-reserve-backing-is-a-routine-discovery-matter
So in any case this could be good for this image though, (although for sure there could be some here that will not agree with that).
How do we verify if they really use their monthly profits to buy BTC? Even if that is true, I don't think it will change anything in regard to the BTC price if that's what we're worried about. I do believe they already did this. This move is probably to provide other ways to answer scrutiny if there are some questions about their reserves in the future.
And finally, the FUD thing is very real. If USDT collapses, Bitcoin will suffer tremendously if a lot of Tether’s reserves are in BTC. On the other hand.. in Bitcoin’s history, except the very last bear run, there’s no downturn it’s never recovered from.
If their documents are to be trusted, most of their reserves are in cash at the time of writing. I don't think they will switch to BTC or other assets entirely since it is easier to get tracked by others. But yeah, people can easily get swayed by rumors on this market so it would be difficult to avoid the impact if they do (nearly) collapse. If they are thinking to increase their BTC reserves it's great but it is again alarming for us because it will lead to more volatility in the market if any fud occurs similar to the LUNA.
Honestly, this is what I'm thinking. Since Luna is also associated to Terra/USTC, I am having that feeling that this could also lead to the same thing as them but it could also be entirely different.While Luna and UST's management have really something into their minds to do some dirty work then Tether has proven themselves that they've got reserves.
Anyway, that's just all what I've thought of and hopefully this would encourage others to focus and buy Bitcoin. Whether they're an enterprise or just an individual who still thinks whether to buy Bitcoin or not.
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