Tether Buys 52,670 Bitcoins in Q1, Set To Outpace MicroStrategy By CoinEdition

• used some of its profits to buy about 52,Dunbo Foreign Exchange670 Bitcoins in Q1, 2023.
• The stablecoin issuer could outpace MicroStrategy if it sustains accumulation strategy and pace.
• Tether accrues interest on US treasuries while paying their depositors 0%.

Tether used some of its profits to buy about 52,670 Bitcoins in Q1, 2023. Samson Mow, CEO of JAN3, believes the stablecoin issuer could achieve a baseline of nearly 200,000 coins per year and outpace MicroStrategy if it sustains this accumulation strategy and pace.

If Tether's accumulation strategy continues at this pace, we'll have a baseline #Bitcoin buy of ~200,000 coins per year. By the end of 2023 they will outpace Microstrategy (NASDAQ:). The game is on. https://t.co/fV2hkMgdSB

— Samson Mow (@Excellion) May 13, 2023

The financial analyst that goes by ‘girevik’ on Twitter highlighted Tether’s recent report of earning almost $1.5 billion as a profit in Q1, 2023. The analyst explained Tether accrues interest on US treasuries while paying their depositors 0%. Hence, rising interest rates profit the stablecoin issuer.

In essence, girevik deduced that the Fed and US Treasury are the ones subsidizing Tether’s purchases. He also noted that investors still prefer putting their money in 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 the crypto aggregation platform CoinmarketCap, girevik showed that Tether’s stablecoin issuance continues to grow, unaffected by rising interest rates.

Renowned investor and entrepreneur Lyle Pratt responded to Mow’s tweet by noting how powerful Tether has become as a Bitcoin whale. According to him, the stablecoin issuer can set the Bitcoin price floor over the coming months if they wish to. Pratt quoted an earlier tweet suggesting that Tether should convert a portion of its treasury to Bitcoin and make it public.

Pratt suggested Tether do so using up to 10% of their treasury, equivalent to $7.5 billion. That will serve as insurance against what he described as “banking shenanigans”, 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 he proposed.

The post Tether Buys 52,670 Bitcoins in Q1, Set To Outpace MicroStrategy appeared first on Coin Edition.

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