Tether plans to regularly allocate 15% of its operating profits to buy Bitcoin starting this month. Tether did not disclose the exact amount of profit it will use to buy Bitcoin. But the company reported $1.48 billion in net profits for 2023 Q1. It plans to allocate up to 15% of realized profits, excluding unrealized gains, for Bitcoin purchases. The reason behind this strategic buying are Capture gains from Bitcoin’s growth, Diversify and strengthen stablecoin reserves. Bitcoin has proven itself as a store of value.
So is this bullish for Bitcoin or crypto? Well, the regular influx of funds into Bitcoin could provide more liquidity and push prices higher, at least in the short term. However, Tether buying will not prevent Bitcoin from crashing if the overall market turns bearish again.
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