In a recent statement on social media platform X, Paolo Ardoino, the CEO of Tether, strongly denied allegations that the company sold its Bitcoin holdings in favor of investing in gold. Ardoino emphasized that Tether has not offloaded any Bitcoin, asserting, “While the world continues to get darker, Tether will continue to invest part of its profits into safe assets like Bitcoin, Gold, and Land.”
The rumors began circulating following a claim made by YouTuber Clive Thompson on September 6. Thompson alleged that Tether had shifted its investment strategy by selling over $1 billion worth of Bitcoin and investing more than $1.6 billion in gold during the last quarter. This assertion suggested a significant move away from Bitcoin in favor of gold, raising concerns among cryptocurrency investors.
However, these claims faced scrutiny from industry insiders. Samson Mow, CEO of Jan3, pointed out critical flaws in Thompson’s analysis that relied on public data. Mow refuted the conclusion that Tether’s decrease in Bitcoin holdings was indicative of sales to purchase gold. He highlighted that Tether’s reported holdings dropped from 92,650 BTC in the first quarter to 83,274 BTC in the second quarter, which Thompson interpreted as a direct sale for gold.
Mow clarified that an essential factor was overlooked: Tether had allocated a total of 19,800 BTC to fund a separate entity called Twenty One Capital (XXI), with transfers occurring on June 2 and in July. Taking this into account, Mow argued that Tether actually had a net increase in Bitcoin holdings of 10,424 BTC, contradicting Thompson’s narrative. Mow condemned Thompson’s statement as “false” and termed it a “desperate” attempt to generate negative sentiment towards Bitcoin.
Amidst these discussions, Tether has been actively diversifying its portfolio and deepening its engagement with gold investments. Just days before Ardoino’s rebuttal, the company publicly announced intentions to invest in gold mining firms. Tether has been progressively moving into this market; in June, it invested $90 million to acquire a notable stake in a company focused on gold royalties. Recently, Tether declared plans to allocate an additional $100 million into the same firm, Elemental Altus Royalties Corp.
Further solidifying its commitment to gold, Tether also issues a gold-backed stablecoin known as Tether Gold (XAUT), which is backed by approximately 7.66 tons of gold stored in Switzerland. Currently, around 5% of Tether’s USDT reserves are held in gold, indicating a strategic approach to asset diversification amid a fluctuating economic landscape.
As Tether navigates its investments, both Bitcoin and gold appear to remain central to its strategy, countering narratives that suggest a shift away from digital assets.
