Tether’s Bitcoin Accumulation
Tether, the stablecoin issuer, has been actively buying Bitcoins and recently acquired an additional $380 million worth of bitcoin, increasing its total holdings to 66,465 BTC valued at approximately $2.8 billion. This consistent strategy began in September 2022 with an initial purchase of 33,980 BTC. Notable acquisitions include a significant purchase of 15,915 BTC in March 2023 and the recent procurement of 8,888 BTC at the end of Q4 2023.
Although Tether has not disclosed its specific Bitcoin addresses, an address identified by 21.co Research Analyst Tom Wan in August of the previous year is believed to be associated with Tether. With these new additions, Tether remains the 11th-largest Bitcoin holder in the market.
Tether has previously revealed its Bitcoin holdings and expressed its commitment to regularly investing a portion of its profits in bitcoin. CEO Paolo Ardoino stated that up to 15% of profits will be allocated to bitcoin investments on a quarterly basis.
Investing in Bitcoin Mining
In addition to direct Bitcoin investments, Tether is also involved in Bitcoin mining and energy production. In November, the company announced a $500 million investment commitment over the next six months for establishing bitcoin mining facilities and making strategic investments in other companies within the industry. Tether has also provided debt financing of up to $610 million to Northern Data AG, a publicly traded bitcoin mining company.
This initiative follows Tether’s acquisition of shares in Northern Data AG in September, indicating its desire to deepen its involvement in the bitcoin mining and energy sectors.
Hot Take: Tether Expands Its Presence in Crypto Market
Tether’s recent acquisition of $380 million worth of bitcoin further solidifies its position in the cryptocurrency market. With a total of 66,465 BTC valued at approximately $2.8 billion, Tether is now the 11th-largest Bitcoin holder. The company has demonstrated a consistent strategy of accumulating bitcoin, regularly investing a portion of its profits in the cryptocurrency. Additionally, Tether’s involvement in bitcoin mining and energy production showcases its commitment to expanding its presence and influence within the crypto industry.
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