Early Uber Investor Jason Calacanis Urges Tether to Sell Bitcoin and Hold U.S. Treasuries
Jason Calacanis, an early Uber investor and prominent angel investor, has publicly urged Tether to sell its Bitcoin reserves and hold 100% U.S. Treasuries instead. Calacanis argues that shifting from Bitcoin to U.S. government securities would ’Americanize’ Tether’s operations, reduce systemic risk and restore credibility by replacing volatile and less-transparent assets with safe, liquid, and transparent government debt. He also recommended two independent audits by American firms to increase transparency. The article notes that Tether’s on‑chain Bitcoin reserve is about 87,296 BTC (roughly $9.0 billion) and that BTC comprises only part of Tether’s reserve mix, which includes U.S. Treasuries, cash and other investments. Calacanis has previously warned about Tether as a potential ’black swan’ due to lack of full audits and opaque custodians. The piece references S&P Global downgrading USDT’s dollar-peg stability to ’weak’ earlier, citing high Bitcoin holdings, absence of full audits and non-transparent counterparties. The story highlights potential implications for market stability and ongoing scrutiny over stablecoin reserve composition.
Bearish
Recommendation that Tether sell its Bitcoin reserves is market-negative for BTC in the near term because it signals heightened regulatory and reputational pressure on the largest stablecoin issuer and raises questions about reserve composition. If Tether were to liquidate or materially reduce its ~87,296 BTC reserve (~$9bn), selling pressure could amplify, at least temporarily, especially into already thin liquidity windows. The call for U.S. Treasuries and independent American audits also increases the likelihood of regulatory scrutiny and greater demand for conservative reserve assets, reducing crypto exposure from a major counterparty. Historically, announcements or moves implying large custodial sales (or regulator requests) have produced short-term price declines for Bitcoin (e.g., large corporate sales or liquidation events). Over the medium to long term, enforced or voluntary moves toward fully liquid, transparent reserves could reduce systemic counterparty risk and improve market confidence in stablecoins — potentially positive for broader crypto adoption — but the immediate reaction is likely bearish due to potential spot selling and increased perceived risk. Traders should monitor on‑chain flows from known Tether addresses, OTC liquidity reports, and any confirmation from Tether on reserve policy or audit commitments; stop-loss management is advised if major outflows are detected.