Tether CEO Paolo Ardoino addressed speculation on a potential Bitcoin liquidation by clarifying that the firm did not sell any of its BTC holdings despite reports suggesting otherwise.
The controversy arose after YouTuber Clive Thompson pointed to a decrease from 92,650 BTC in Q1 to 83,274 BTC in Q2, citing Q2 attestations by BDO as evidence of a major sell-off.
In response, Samson Mow, CEO of Jan3, detailed that Tether had transferred 19,800 BTC to a newly formed initiative, Twenty One Capital (XXI), including 14,000 BTC in June and 5,800 BTC in July.
Ardoino reiterated that these movements represented strategic asset allocation rather than portfolio reductions, emphasizing Tether’s commitment to diversifying profits into safe-haven assets.
According to data from BitcoinTreasuries.NET, Tether’s total BTC holdings now exceed 100,521 coins, valued at over $11.17 billion at current market prices.
Ardoino posted on X, “While the world continues to get darker, Tether will continue to invest part of its profits into safe assets,” underscoring the company’s long-term reserve strategy.
He confirmed that allocations will continue across Bitcoin, gold, and land, reflecting a hybrid reserve model aimed at mitigating systemic risk.
The clarification followed speculation of gold investments by El Salvador, which recently acquired 13,999 troy ounces of gold worth $50 million, marking the nation’s first gold purchase since 1990.
El Salvador’s diversification move paralleled Tether’s strategy, though the two actions remain independently managed by their respective institutions.
Tether’s spokesperson emphasized that stablecoin reserves maintain a high-quality portfolio, with fiat and short-term Treasury instruments forming the core backing of issued USDt tokens.
Industry analysts note that market confidence in stablecoin issuers hinges on transparent proof-of-reserve practices and clear delineation between operational treasuries and backing collateral.
The clarification is expected to alleviate market concerns about potential sell pressure from one of the largest corporate Bitcoin holders.
BloomingBit research indicates that corporate holders control approximately 5.2% of total circulating BTC, making Tether’s actions especially impactful on market liquidity considerations.
Meanwhile, stablecoin transfer volumes reached new daily highs amid uncertainty, suggesting that traders sought onchain dollar alternatives to manage short-term risk.
Regulatory observers point to ongoing discussions in Washington, D.C., about stablecoin oversight frameworks that could impose capital requirements and audit standards on issuers.
If enacted, new regulations may formalize reserve composition rules, impacting how firms like Tether structure their asset allocations.
Market sentiment metrics, including onchain transaction velocity and net stablecoin inflows, showed resilience following Ardoino’s clarification, with USDT trading volumes stabilizing around $50 billion per day.
Despite occasional bursts of FUD, stablecoin firms continue to expand their balance sheets, with Tether’s combined backing assets now exceeding $85 billion in total reserves.
Investors and regulators alike will monitor future attestations for further confirmation of reserve integrity and transparency.
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