Tether Boosts Bitcoin Holdings with $627 Million Purchase

Tether, the leading issuer of stablecoins worldwide, has recently acquired an additional 8,889 Bitcoins (BTC). This purchase, amounting to approximately $627 million, elevates Tether’s Bitcoin reserves to 75.354K BTC.

Tether’s Bitcoin Acquisition Strategy

Since September 2022, Tether has been actively accumulating Bitcoin, reinforcing its commitment in May 2023 to amass the cryptocurrency. Tether sees Bitcoin as not only an investment opportunity but also a means to diversify its assets away from traditional holdings like US Treasury bonds.

Paolo Ardoino, CEO of Tether, emphasized Bitcoin’s appeal, citing its limited supply, decentralized nature, and widespread adoption among both institutional and retail investors. He views the investment in Bitcoin as a strategic move to enhance portfolio performance and align with transformative technology.

Tether’s strategic accumulation of Bitcoin has yielded significant returns, contributing to a record-breaking net profit surge of $2.85 billion in Q4 2023. A substantial portion of this profit stemmed from Bitcoin’s price appreciation, alongside gains from US Treasury interests and gold reserves.

Tether’s Ranking Among Bitcoin Holders

With its burgeoning Bitcoin reserves, Tether now stands as the sixth-largest holder of Bitcoin worldwide, alongside entities such as ETFs, miners, and publicly listed companies. Notably, Tether closely trails behind other major holders like Fidelity, MicroStrategy, BlackRock, and Grayscale.

While Tether’s Bitcoin holdings are significant, it ranks below entities such as Fidelity’s spot Bitcoin ETF (FBTC), MicroStrategy, BlackRock’s IBIT, and Grayscale’s GBTC. However, collectively, Tether’s Bitcoin holdings represent a substantial portion of the global Bitcoin supply.