In a recent social media interaction, Tether’s CEO Paolo Ardoino reiterated the company’s unwavering commitment to Bitcoin, dismissing any potential allocation of profits to Ethereum. Ardoino’s stance is clear: Bitcoin’s immutability and scarcity make it the preferred choice for Tether, which has already committed 15% of its profits to Bitcoin investments. Despite Ethereum’s attempts to innovate and capture market interest, Tether continues to favor Bitcoin, citing Ethereum’s inconsistencies and lackluster performance against Bitcoin. With record profits and ambitious projects in the pipeline, Tether’s strategy is firmly anchored in Bitcoin’s long-term potential.

Tether’s Commitment to Bitcoin Over Ethereum

Bitcoin First, Ethereum on the Sidelines
In a recent social media exchange, RunnerXBT posed a question that resonates with many in the crypto community: whether Tether would consider allocating a portion of its profits to Ethereum. Paolo Ardoino, Tether’s CEO, responded unequivocally, stating, “Bitcoin first!” Ardoino’s response underscores Tether’s clear preference for Bitcoin, which he views as the cornerstone of their investment strategy.

Bitcoin’s Immutable Appeal

Why Tether Chooses Bitcoin
Paolo Ardoino’s rationale for prioritizing Bitcoin is straightforward: “Bitcoin is immutable. Only 21 million coins. Easy choice.” This statement reflects Tether’s belief in Bitcoin’s fundamental strengths—its scarcity and immutability. These qualities make Bitcoin a reliable and attractive asset for Tether, which last year announced plans to invest 15% of its profits in Bitcoin to bolster its reserves.

Tether’s Strategic Bitcoin Investments

Record Profits Fuel Bitcoin Purchases
Tether’s commitment to Bitcoin is not just theoretical. The company, with record profits of $1.3 billion in the last quarter, has continued to allocate a significant portion of its earnings to Bitcoin. Ardoino confirmed that these purchases were made through Tether’s investment arm in 2024, further solidifying Bitcoin’s role as a key asset in Tether’s portfolio.

Ambitious Projects Beyond Bitcoin

Tether’s Broader Investment Strategy
While Bitcoin remains central to Tether’s strategy, the company is also exploring other ventures. These include a $627 million investment in Bitcoin in April, the launch of a gold-backed stablecoin called Alloy, and initiatives in decentralized artificial intelligence. These projects demonstrate Tether’s ambition to diversify its offerings while maintaining a strong foundation in Bitcoin.

Ethereum’s Struggles and Tether’s Skepticism

Ethereum’s Shifting Narrative
Despite Ethereum’s attempts to innovate, Tether remains unconvinced. Ardoino has consistently criticized Ethereum’s frequent changes and perceived lack of consistency. He noted, “Ethereum changes its narrative like changing clothes,” a sentiment echoed by the performance of the ETH/BTC pair, which has dropped by 45% since December 2021. Even Ethereum’s recent surge in May, driven by ETF approvals, failed to sway Tether’s confidence in Bitcoin.

Tether’s Bitcoin-Centric Future

Bitcoin as the Long-Term Bet
In conclusion, Tether’s record profit of $5.2 billion in the first half of 2024 reaffirms its commitment to Bitcoin. Despite Ethereum’s ongoing developments, Tether remains steadfast in its belief that Bitcoin offers the security and growth potential needed for long-term success. As Tether continues to expand its projects and investments, Bitcoin will likely remain at the core of its strategy.