Tether (USDT), a stablecoin provider, revealed in its Q2 attestation that it increased its reserves of Bitcoin (BTC) by more than $170 million, bringing the total to $1.67 billion from $1.5 billion in Q1.
The fact that Tether is investing in Bitcoin shows that it has faith in the industry. By investing in BTC, the firm has shown its confidence in the asset’s long-term potential.
Tether’s excess reserves increased by $850 million in Q2, reaching $3.3 billion. This is a significant increase from the $2.44 billion recorded in Q1.
Tether’s excess reserves are profits that the company has chosen to keep instead of distributing to shareholders. These reserves are held alongside the company’s 100% reserves for issued USDT tokens, providing a strong backing for the stablecoin.
In Q2 2023, Tether’s operational profits soared beyond $1 billion, a 30% rise from the previous quarter.
Tether’s reserves are backed by 85% cash and cash equivalents, making them highly liquid.