Tether's Recent $380 Million Purchase Boosts Bitcoin Holdings to $2.8 Billion

Tether Increases Bitcoin Holdings to $2.8 Billion

Tether, the stablecoin issuer, has purchased an additional $380 million worth of bitcoin, bringing its total holdings to 66,465 BTC ($2.8 billion) by the end of last quarter. This marks Tether’s third-largest purchase to date.

Consistent Bitcoin Acquisitions

Since September 2022, Tether has been steadily acquiring bitcoin every quarter. Its initial buy was 33,980 BTC, followed by a purchase of 15,915 BTC in March 2023. The most recent acquisition of 8,888 BTC at the end of the fourth quarter solidifies Tether’s position as the 11th-largest bitcoin holder.

Public Disclosure and Address Confirmation

Tether first disclosed its bitcoin holdings in May 2023. While the company hasn’t officially revealed its bitcoin addresses, an address identified by 21.co Research Analyst Tom Wan was confirmed by The Block as belonging to Tether.

Tether’s Bitcoin Investment Strategy

Tether has stated its intention to invest a portion of its profits in bitcoin regularly. CEO Paolo Ardoino reaffirmed this commitment and mentioned that up to 15% of Tether’s profits would be allocated for quarterly bitcoin purchases.

Tether’s Involvement in Bitcoin Mining

In addition to direct bitcoin investments, Tether is active in the bitcoin mining and energy production space. The company plans to invest $500 million over the next six months in constructing mining facilities and taking stakes in other companies.

Tether’s Stablecoin Business

Tether primarily operates the USDT stablecoin, which has helped generate excess reserves worth $3.2 billion as of September 30, 2023. The company’s fourth-quarter attestation report is expected to be released soon.

Hot Take: Tether Expands Bitcoin Holdings and Mining Operations

Tether’s recent purchase of $380 million worth of bitcoin adds to its growing holdings, reaching a total of $2.8 billion. The company has consistently acquired bitcoin each quarter since September 2022, with its most recent acquisition being the third-largest to date. Tether’s involvement in bitcoin mining and energy production further demonstrates its bullish stance on the cryptocurrency. As it continues to shift its stablecoin reserves towards crypto assets, Tether remains committed to regularly investing a portion of its profits in bitcoin. With its expanding influence in the crypto space, Tether’s impact on the market is likely to be significant.