Tether Quietly Acquires $360 Million Worth of Bitcoin
According to on-chain data, stablecoin giant Tether purchased over $360 million worth of Bitcoin (BTC) at the beginning of this year. This brings Tether’s total Bitcoin holdings to 66,400 BTC, valued at $2.7 billion.
Tether’s Massive Bitcoin Buys
CryptoQuant, a Bitcoin market intelligence provider, reported that a blockchain address linked to Tether saw its balance increase from 57,500 BTC to 66,400 BTC on January 4. This is the largest single-day rise for the address since March 2023. In May, Tether disclosed that 2% of its reserves were held in Bitcoin and announced plans to allocate 15% of its operating profits into BTC.
An analyst from CryptoQuant noted that Tether is now the 11th largest holder of Bitcoin globally.
Identifying Tether’s Wallet
A digital asset analyst at 21Shares claimed to have identified Tether’s wallet by comparing its suspected address’s holdings to the company’s quarterly attestation reports. The Block later confirmed with a private source that the address indeed belongs to Tether. Despite the rising price of Bitcoin, the address has more than doubled its coins since September 2022.
Tether’s Profitability and Investments
Tether is one of the most profitable companies in the crypto industry, with its USDT token having a market cap of $94 billion. In Q3 alone, the company earned $1 billion in profit from its investments in treasuries and other cash equivalents. It is using much of its profits for research in the Bitcoin and crypto industry and to strengthen its “excess reserves,” including positions in gold and Bitcoin.
Tether has also ventured into the Bitcoin mining industry, supporting El Salvador’s $1 billion Bitcoin mining initiative. Cantor Fitzgerald CEO Howard Lutnick confirmed that his company holds Tether’s treasuries and assured investors that the tokens are fully backed.
Hot Take: Tether Expands Bitcoin Holdings Amid Profitable Year
Tether’s recent acquisition of over $360 million worth of Bitcoin reflects the company’s continued interest in the cryptocurrency. With a significant increase in its Bitcoin holdings, Tether solidifies its position as one of the largest holders of BTC globally. The company’s profitability and investments in various industries, including research and Bitcoin mining, demonstrate its commitment to diversification and growth. As Tether expands its presence in the crypto industry, it remains crucial for investors to stay informed about its operations and their impact on the market.
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