Stablecoin provider Tether’s second-quarter financial audit revealed a significant increase in Bitcoin BTC -0.63% reserves, which increased by $170 million from the first quarter to a total value of $1.67 billion.
At the beginning of the year, Bitcoin reserves stood at $1.5 billion, making up a significant portion of the company’s assets. The price increase comes after Tether announced in May that it planned to spend 15 percent of its operating profits on Bitcoin purchases.
In contrast, Tether’s holdings of precious metals have decreased significantly, especially gold, which fell to $3.27 billion from $3.39 billion held in the first quarter.
The firm’s additional reserves rose by $850 million, bringing total reserves to $3.3 billion, a sharp jump from $2.44 billion in the first quarter, further evidence of the firm’s determination to pivot toward digital assets.
According to Tether’s quarterly statements, these additional provisions include income that the company chooses not to distribute to shareholders. These funds are held with a 100% reserve of issued USDT tokens. The company’s strategy appears to be aimed at maintaining healthy liquidity.
As stated in the Q2 report, 85% of Tether’s total investment is held in currency and currency equivalents, underscoring the company’s confidence in the liquidity of its reserves.
With these strategic moves, Tether appears to be sending a clear signal to move toward cryptocurrencies like Bitcoin and away from traditional assets like gold.
The company has not yet clarified the reasons behind this decision. One thing is for sure, though, Tether is betting big on the future of digital currencies. This latest report showcases the evolving financial strategies of businesses in the era of digital assets and blockchain technology.
