Tether has record profits but has stopped purchasing bitcoin
Tether has released its most recent attestation, which claims record profits of $5.2 billion for the first half of 2024. However, a close review of the attestations shows that Tether’s purchases of bitcoin seem to have been paused.
For context, in May 2023, Tether announced its intention to “regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin.” It further noted that these investments would “not exceed the Shareholder Capital Cushion” which has reached a total of almost $12 billion, however, the total amount of bitcoin on hand is less than $5 billion.
Closely reviewing the attestations seems to suggest that Tether has not increased its quantity of bitcoin since its last attestation three months ago, despite these record profits.
This can be further confirmed by checking bc1qjasf9z3h7w3jspkhtgatgpyvvzgpa2wwd2lr0eh5tx44reyn2k7sfc27a4, the address that The Block has previously identified as where Tether was storing its bitcoin. This address saw its last significant increase at the beginning of April.
While Tether has slowed its purchase of bitcoin, it is still actively investing in the industry, including bitcoin mining.
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