TL;DR

• Tether, the company behind the world's largest stablecoin by market cap, just announced a new investment strategy.

• For any company to make $1.48B in profit in a single quarter is a big deal - a Web3 company, during a bear market making $1.48B in a single quarter? Incredible.

• If companies that understand crypto start to make more and more institutional investments in BTC, chances are, eventually that will flow through to non-crypto-related companies following suit.

Full Story

Tether, the company behind the world's largest stablecoin by market cap, just announced a new investment strategy.

The plan is to allocate ~15% of their profits each month to purchase BTC.

In their Q1 attestation this year, they said that 85% of their current reserves are held in cash and cash-like assets (such as U.S. Treasury bonds) - plus they had $1.5B in BTC and $3.4B in gold.

This news may not sound that exciting to most, but when we peel back the onion, it starts to be very exciting indeed.

Here's why:

• Tether reported $1.48B of net profits in their 2023, Q1 earnings report.
  
  For any company to make $1.48B in profit in a single quarter is a big deal - a Web3 company, during a bear market making $1.48B in a single quarter? Incredible.

• Sure, Tether's product is related to Web3, but their investment in BTC still constitutes 'institutional investment.'
  
  If companies that understand crypto start to make more and more institutional investments in BTC, chances are, eventually that will flow through to non-crypto-related companies following suit.

The aim with their additional investment into BTC is to strengthen their reserves, while capitalizing on its price appreciation, the press release said.

The folks at Tether are pretty damn smart are closely looped into the crypto markets.

Looking forward to seeing how this pans out!