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© Shutterstock Tether Buys 52,670 Bitcoins in Q1, Set to Outpace MicroStrategy
- It used some of its profits to buy about 52,670 bitcoins in the first quarter of 2023.
- A stablecoin issuer can outperform MicroStrategy if it keeps up its accumulation strategy and pace.
- Tether accrues interest on US Treasury bonds while paying its depositors 0%.
Tether used some of its profits to buy about 52,670 bitcoins in the first quarter of 2023. Samson Mow, CEO of JAN3, believes that the stablecoin issuer could generate a baseline of close to 200,000 coins per year and outperform MicroStrategy if it maintains this accumulation strategy and pace. .
If Tether’s accumulation strategy continues at this pace, we’ll have a #Bitcoin baseline of buying ~200,000 coins per year. By the end of 2023 they will overtake Microstrategy (NASDAQ:). The game has started. https://t.co/fV2hkMgdSB
– Samson Mow (@Exccellion) May 13, 2023
The financial analyst using “girevik” on Twitter highlighted Tether’s recent report of earning nearly $1.5 billion in profits in the first quarter of 2023. The analyst explained that Tether is accruing interest on US Treasuries while paying its depositors 0%. Thus, higher interest rates benefit the stablecoin issuer.
In essence, girevik reasoned, it is the Federal Reserve and the US Treasury that support Tether purchases. He also noted that investors still prefer to put their digital dollars outside the banking system, despite the opportunity to earn 5% risk-free in a bank or money market fund.
Using a screenshot from cryptocurrency aggregation platform CoinmarketCap, girevik showed that Tether stablecoin issuance continues to grow, unaffected by rising interest rates.
Famed investor and entrepreneur Lyle Pratt responded to Mow’s tweet by pointing out how powerful Tether has become as a Bitcoin whale. According to him, the stablecoin issuer can set a floor for the Bitcoin price over the coming months if they wish. Pratt quoted an earlier tweet suggesting that Tether should convert a portion of its treasury into Bitcoin and make it public.
Pratt suggested that Tether do so by using up to 10% of its treasury, which equates to $7.5 billion. That would be insurance against what he described as “bank scams,” which are likely to increase. So far, Tether has invested $1.5 billion in Bitcoins, and Pratt believes they will go ahead and invest the remaining $6 billion that he suggested.
Post Tether Buying 52,670 Bitcoins in Q1, Set To Outpace MicroStrategy appeared first in Coin Issue.
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