Tether Expands Bitcoin Holdings
In the first quarter of 2024, Tether acquired an additional $627 million worth of bitcoins, accumulating a total of approximately 75,354 BTC, valued at over $5.2 billion. This strategic move comes as bitcoin continues to soar, hitting new all-time highs and currently trading at around $69,500.
Tether’s Bitcoin Acquisition Strategy
The crypto community has been closely monitoring Tether’s approach to accumulating bitcoins. While the company has not publicly disclosed its Bitcoin addresses, recent reports have shed some light on the Tether’s accumulation tactics.
- Last year, The Block confirmed Tether’s one Bitcoin address, which has been consistently amassing bitcoins every quarter since September 2022.
- The recent purchase of 8,888 bitcoins solidifies Tether’s position as the seventh-largest holder of bitcoin, climbing up from its previous ranking of 11 earlier this year.
Insights from Tether CEO
When contacted for confirmation, Tether CEO Paolo Ardoino verified the company’s bitcoin acquisitions, detailing that the purchase of 8,888 bitcoins transpired throughout the first quarter. Ardoino emphasized that the acquisition was spread out over the quarter, with a final settlement on March 31.
Revealing Tether’s Bitcoin Holdings
Tether publicly disclosed its bitcoin holdings for the first time in May 2023 as part of its quarterly attestation report. This move marked a shift towards diversification as the company vowed to use up to 15% of its profits to acquire bitcoins each quarter, transitioning its stablecoin reserves from traditional assets to cryptocurrencies.
Tether’s Diversified Ventures
Aside from its bitcoin investments, Tether has ventured into bitcoin mining, energy production, and recently made strides in the AI sector. The company aims to lead the development of open-source AI models, pushing boundaries and enhancing accessibility within AI technology.
Tether’s Stablecoin Business
While Tether’s foray into bitcoin grabs headlines, its mainstay remains the USDT stablecoin. The company boasted $5.4 billion in excess reserves as of December 31, 2023, positioning itself as the largest stablecoin issuer. With over 109 billion USDT in circulation, Tether maintains its dominance in the stablecoin market.
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