Jack Dorsey, a prominent figure in the cryptocurrency space and co-founder of Twitter, has publicly questioned Tether’s recent donation of $250,000 to support Bitcoin developers through the OpenSats initiative. The donation, intended to foster the growth of Bitcoin and its associated projects, has drawn scrutiny from Dorsey, who appears to find the amount disproportionately small given Tether’s significant financial standing and its role within the broader crypto ecosystem. This highlights a growing tension surrounding corporate philanthropy in the open-source development sector, particularly within the rapidly evolving digital asset market.
Tether, a leading stablecoin issuer, announced the contribution as part of its commitment to a “freer and decentralized future,” emphasizing the importance of Bitcoin’s underlying open-source software. Paolo Ardoino, CEO of Tether, articulated this sentiment. However, Dorsey’s immediate response on social media, querying “Why only $250K?”, suggests a disconnect between Tether’s stated commitment and the tangible financial support provided.
The criticism from Dorsey gains significant weight when considering Tether’s reported profitability. The company, which issues the USDT stablecoin, is understood to have achieved substantial profits, with reports indicating a figure of $13 billion last year. Further, industry publications have noted Tether’s potential plans to raise approximately $20 billion through a private placement, which could significantly increase its market valuation, potentially approaching $500 billion. This substantial financial capacity appears to be the crux of Dorsey’s questioning, implying that a more significant contribution would align better with the company’s economic power and its declared support for the Bitcoin network’s infrastructure.
Dorsey himself is a vocal proponent of decentralized technologies and has demonstrated substantial financial commitment to Bitcoin development. His Start Small Initiative reportedly donated over $21 million to OpenSats in 2024, a figure he contrasted with Tether’s donation when challenged by another user on X. This substantial personal investment underscores his dedication to nurturing the foundational elements of the Bitcoin ecosystem.
However, Dorsey’s own philanthropic efforts have not been without their critics. Udi Wertheimer, creator of the Bitcoin Ordinals project Taproots Wizard, while initially supportive of Dorsey’s advocacy, later raised concerns regarding Dorsey’s involvement with the Ocean Bitcoin mining pool. Wertheimer suggested that capital invested in such pools, which have faced criticism for potentially hindering non-financial transactions on the Bitcoin blockchain, should perhaps be “subtracted” from philanthropic figures, implying that such investments could indirectly impede development.
The discourse initiated by Dorsey’s question prompts reflection on the expectations placed upon major entities within the cryptocurrency industry regarding their contributions to public goods, such as the development of open-source protocols. It remains to be seen whether Tether will elaborate on its donation strategy or increase its support for Bitcoin developers. In parallel, Tether has continued to expand its own Bitcoin holdings, notably acquiring 8,888 BTC, positioning itself as a significant holder within the network.
Blockchain developer and writer, Daniel combines hands-on coding experience with accessible storytelling. He holds multiple blockchain certifications and authors technical explainers, protocol deep-dives, and developer tutorials to help readers navigate the intersection of code and finance.