In the rapidly evolving world of cryptocurrency, speculation can create a whirlwind of opinions, especially surrounding major players like Tether. Recently, Paolo Ardoino, the CEO of Tether, has firmly addressed speculations regarding the company’s investments, particularly in Bitcoin (BTC), gold, and land. He emphasized that Tether remains resolutely bullish on Bitcoin, countering rumors about any substantial sell-offs.
Despite the allegations that Tether was divesting its Bitcoin to increase its gold holdings, both Ardoino and fellow industry expert Samson Mow have stood their ground. They clarified that recent quarterly statements showing a decrease in Bitcoin reserves do not imply liquidations but rather strategic reallocations.
Clarification of Tether’s Bitcoin Holdings
The crypto space is rife with discussions, especially concerning whether Tether, the powerhouse behind the USDT stablecoin, is offloading portions of its Bitcoin.
In a recent discussion on social media, Samson Mow underscored the findings of analyst Clive Thompson, who suggested Tether’s Bitcoin balance diminished from 92,650 BTC to only 83,274 BTC within a quarter. Through this lens, he argued that Tether was indeed transitioning their Bitcoin assets to accumulate more gold.
However, Mow countered these claims by highlighting an essential aspect of Tether’s strategy. He pointed out that substantial amounts of Bitcoin were moved to their investment arm, Twenty One Capital (XXI), indicating that rather than selling, Tether is aggressively investing. Specifically, a transfer of 14,000 BTC occurred shortly after the second quarter commenced, with another 5,800 BTC following in July.
When you factor in these transactions, Tether had actually concluded the second quarter with an increase of 4,624 BTC compared to the previous quarter. The overall growth was more than 10,000 BTC considering the July allocations. Mow articulated that the ongoing narratives surrounding negative Bitcoin trends were largely overblown.
Tether’s Strategic Investments in Safe Assets
Tether CEO Paolo Ardoino shared insights on the broader strategy behind Tether’s asset management, directly addressing the concerns about any Bitcoin liquidation. He assured the community that the decline in Bitcoin reserve numbers was exclusively tied to investments in their strategic branch, Twenty One Capital (XXI), dismissing claims of sales outright.
“That’s right. Tether hasn’t sold any Bitcoin. There are transfers into XXI, as Samson mentions,” Ardoino stated. His comments reiterated the firm commitment Tether has toward diversifying its profit channels into recognized safe assets, which includes Bitcoin, gold, and land. Furthermore, Tether reportedly has plans to delve into gold mining projects, reinforcing their strategy to balance their investment portfolio.
Additionally, Ardoino termed gold as “natural Bitcoin,” highlighting a symbiotic relationship between the two assets. This insight reflects Tether’s broader investment ambitions, notably a recent $105 million stake in the gold royalty venture, Elemental Altus.
