Tether CEO Addresses Bitcoin and Gold Trading Rumors

By: Eliza Bennet

Paolo Ardoino, CEO of Tether, has publicly denied allegations that the company has been selling its Bitcoin holdings to invest in gold. In a statement on the social media platform X, Ardoino made it clear that Tether has not sold any Bitcoin, instead maintaining its strategy to allocate profits into a variety of assets including Bitcoin, gold, and land.

This clarification from Ardoino comes in response to a claim made by YouTuber Clive Thompson, who based his assertion on Tether's asset statements. According to Thompson, Tether reportedly sold over $1 billion in Bitcoin, opting instead to purchase gold worth approximately $1.6 billion in the last quarter. These conclusions were drawn from an analysis of Tether's quarterly asset attestations. However, Samson Mow, CEO of Jan3, contested Thompson's claims, highlighting a misinterpretation of public data. Mow explained that a decrease in Bitcoin holdings reported by Tether was largely due to transfers linked to its funding of a separate project called Twenty One Capital (XXI). These transactions involved the transfer of 19,800 BTC across June and July, which should have been considered in assessing Tether's Bitcoin position.

Despite this temporary reduction, Mow asserted that Tether had net increased its Bitcoin holdings by 10,424 BTC during the same period, thereby debunking the sell-off narrative as a "desperate" attempt to foster negative sentiment towards Bitcoin. Supporting Tether's stablecoin issuance, a significant portion of its reserves is invested in gold. The firm has also made substantial investments in the gold mining sector, acquiring a $90 million stake in a gold royalties company, Elemental Altus Royalties Corp, and announcing another $100 million investment in the same enterprise.

Moreover, Tether issues the XAUT token, a gold-backed stablecoin that is purportedly supported by 7.66 tons of gold stored in Switzerland. Approximately 5% of USDT reserves are also held in gold, affirming Tether's diversified investment approach. This ongoing diversification strategy seems well-aligned with the company's broader financial goals, countering the narratives that attempt to misinterpret its financial maneuvers.

For more details about Tether’s latest moves and strategies, visit their official website or check reputable blockchain analytics platforms for their official statements.