Tether Responds to WSJ Article, Accusing It of Tabloid Reporting
Tether, the stablecoin company, has criticized a recent Wall Street Journal (WSJ) article, calling it “tabloid-style reporting” aimed at damaging the reputation of innovative companies. The article highlighted the increase in Tether loans in the latest financial quarter update. However, Tether argued that the WSJ failed to address the challenges faced by the traditional banking industry.
In a statement, Tether emphasized that the banking industry is struggling to keep up with evolving global financial markets, a point repeatedly overlooked by the Wall Street Journal.
Tether also defended its financial position, stating that it holds over $3.3 billion in excess reserves. This substantial amount reduces its exposure to secured loans. Tether reiterated its commitment to removing these loans from its reserves.
Controversy Surrounding Tether’s Loans
The WSJ article mentioned that Tether had received loan requests from customers with whom they had longstanding relationships. Tether spokesperson Alex Welch confirmed this information. The article raised concerns about these loans potentially posing risks to the crypto world.
Tether dismissed these claims, arguing that with $3.3 billion in excess equity and projected annual profits of $4 billion, it is effectively offsetting secured loans and retaining significant profits.
Tether’s Diversification Strategy
Besides its stablecoin operations, Tether has been expanding its investments in other areas. It has ventured into bitcoin mining operations in Latin America, including partnerships with Volcano Energy in El Salvador and an undisclosed mining project in Uruguay.
Tether has also made investments in the artificial intelligence (AI) semiconductor market. Reports suggest that the company acquired 10,000 Nvidia H100 graphics processing units (GPUs) for AI computations, spending $420 million. This investment granted Tether a 20% stake in Northern Data, a Bitcoin mining company.
Hot Take: Tether Counters WSJ Allegations and Highlights Diversification Efforts
Tether strongly refutes the recent Wall Street Journal article, accusing it of resorting to tabloid-style reporting to smear the reputation of innovative companies. The stablecoin company highlights the challenges faced by the traditional banking industry, which the WSJ allegedly ignored.
Tether defends its financial position, emphasizing its substantial excess reserves of over $3.3 billion. It remains committed to removing secured loans from its reserves.
Additionally, Tether’s diversification strategy includes investments in bitcoin mining operations and the AI semiconductor market. These moves showcase Tether’s efforts to expand beyond its stablecoin operations and explore new opportunities in emerging sectors.
By
By
By
By
By