"Gold and treasuries as safe havens."
Tether is trying to secure its survival. Today it holds over 100,000 Bitcoin worth around $7 billion, and more than $100 billion in US Treasuries, making it one of the largest private holders of US government debt, essentially plugged directly into the pipes of the dollar system.
But recently, it added $8.7 billion in physical gold and acquired stakes in gold mining companies. This move acts as a hedge against the risks that have started to emerge.
The way they presented it is curious: describing gold as “Natural Bitcoin.” That’s just marketing aimed at the crypto crowd, to avoid looking like they’re contradicting the idea that Bitcoin is the ultimate store of value. But their portfolio allocation tells a different story.
✅ Treasuries and gold remain far safer than Bitcoin in this environment.
✅ Treasuries are still the deepest and most liquid market in the world.
✅ Gold has preserved its value for thousands of years (since Babylon).
⚠️ #bitcoin can lose 50% to 70% in a downturn, potentially wiping billions off Tether’s balance sheet overnight.
Gold, on the other hand, has provided them with a degree of stability, while investments in gold mining firms allow them to benefit from any upside in gold prices during crises.
And this isn’t random: since 2022, central banks have been buying over 1,000 tons of gold annually, double the pre-Covid pace. Countries like China, Iran, and Poland are sending the same message: “the goal isn’t profit, but insurance against economic fragility and geopolitical fractures.”
Tether doesn’t even trust the very system it operates within. It sees the same risks everyone else sees: mounting debt, rising Fed interest costs, and liquidity risks. That’s why it’s hedging and cutting direct exposure to Bitcoin’s volatility, relying instead on the two oldest pillars of financial safety: Treasuries and gold as safe havens.
Always DYOR and size accordingly. NFA!
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