A recent controversy swirled around Tether, the issuer of the largest stablecoin USDT, concerning its strategic asset allocation. Claims emerged that the firm was divesting from Bitcoin in favor of gold, prompting a direct response from CEO Paolo Ardoino, who unequivocally denied any sale of the leading cryptocurrency. This incident highlights Tether's dual approach to maintaining robust reserves, balancing its commitment to digital assets with a strategic diversification into traditional "safe haven" commodities.
Debunking the "Bitcoin Dump" Rumor
The speculation originated from YouTuber Clive Thompson, who asserted that Tether had sold over $1 billion in Bitcoin to purchase more than $1.6 billion in gold, interpreting a reported decrease in Bitcoin holdings as a "dump." However, Jan3 CEO Samson Mow swiftly debunked this theory, revealing critical flaws in Thompson's analysis. Mow explained that the apparent reduction in Tether's reported Bitcoin reserves was not due to sales, but rather internal transfers of approximately 19,800 BTC to a separate project, Twenty One Capital (XXI). After accounting for these transfers, Tether actually recorded a net increase in its Bitcoin holdings, accumulating over 10,424 BTC in the quarter, thereby discrediting the claim as "false" and a misrepresentation of the firm's asset movements.
Tether's Strategic Gold Diversification
While not abandoning Bitcoin, Tether is indeed deepening its relationship with gold as a key component of its diversified reserve strategy. CEO Ardoino affirmed that Tether continues to invest profits in "safe assets like Bitcoin, Gold and Land." This commitment to gold is evident through several initiatives: the company recently announced plans to invest in gold mining firms and has already poured $190 million into acquiring a substantial stake in Elemental Altus Royalties Corp, a company specializing in gold royalties. Furthermore, Tether operates Tether Gold (XAUT), a gold-backed stablecoin, with approximately 7.66 tons of physical gold stored in Switzerland. Roughly 5% of USDT's vast reserves are also held in gold, underscoring its long-term strategy of integrating both digital and traditional safe assets to fortify its financial stability.
