Tether Amasses Gold and Bitcoin Reserves in Ambitious Expansion Plan

Tether's CEO Paolo Ardoino has outlined an ambitious strategy to expand its dollar network, buying Bitcoin and gold in the process.

The company has been quietly amassing enormous reserves of gold, purchasing between 1-2 tons per week, which translates to approximately 140 tons valued at $23-24B. Gold accounts for around 10-15% of Tether's investment portfolio, funded by profits from its core operations.

Ardoino has described Bitcoin as a 'digital inflation hedge' and a crucial defense against an 'apocalyptic future'. Tether has been allocating up to 15% of its realized operating profits to Bitcoin since May 2023, building a position worth north of $8B. The company's total reserves include US Treasuries and cash equivalents.

Tether's stablecoin dwarfs every competitor, with approximately $186B in circulation, making it the de facto digital dollar for emerging markets worldwide. The company earns yield on Treasury bonds backing USDT while users get dollar exposure without earning interest.