Tether denies Bitcoin sell-off rumors, confirms buying BTC, gold, land
News Summary
Tether CEO Paolo Ardoino has denied rumors that the stablecoin issuer is offloading its Bitcoin holdings to buy gold, reaffirming the company's strategy of allocating profits into assets like Bitcoin, gold, and land. The speculation arose from a YouTuber citing Tether's Q1 and Q2 2025 attestation data, claiming a reduction in BTC holdings. However, Jan3 CEO Samson Mow and Ardoino clarified that 19,800 BTC (part of a larger transfer of 37,000 BTC) was moved to a separate initiative called Twenty One Capital (XXI), not sold, indicating a net increase in Tether's holdings. Separately, El Salvador announced its first gold acquisition since 1990, adding $50 million worth of gold to its foreign reserves. This move is part of a diversification strategy to reduce reliance on the US dollar, even though the country had previously built a $700 million Bitcoin reserve. An IMF report, however, suggested El Salvador had not made new Bitcoin purchases since February.
Background
Tether is the issuer of USDt (USDT), the world's largest stablecoin, and the transparency and stability of its reserve assets are crucial for cryptocurrency market liquidity and investor confidence. The company regularly provides attestations of its holdings and has consistently been under market scrutiny regarding its reserve composition, especially concerning its holdings of volatile assets like Bitcoin. El Salvador was the first country to adopt Bitcoin as legal tender and had previously accumulated significant Bitcoin reserves. Its recent move to acquire gold may reflect growing concerns among some nations about the US dollar's dominance in the current global economic and geopolitical landscape, seeking to enhance economic resilience through reserve diversification, aligning with potential trade and monetary policies under the Trump administration.
In-Depth AI Insights
What deep insights do Tether's explicit denial and El Salvador's gold purchase offer regarding the future trends in digital assets and sovereign reserves? - Tether's swift clarification underscores the extreme sensitivity of stablecoin reserve transparency, especially when volatile assets like Bitcoin are involved. This proactive debunking of rumors suggests that maintaining investor confidence is a top priority for Tether amidst crypto market volatility and increasing regulatory scrutiny. - Despite clarifying a Bitcoin transfer rather than a sale, Tether's continued strategy of investing profits into Bitcoin, gold, and land reinforces its long-term bullish stance on these