Tether Boosts Bitcoin Reserves to $5.3 Billion with New Purchase

Key Takeaways

• As per Arkham Intelligence data, the acquisition involved on-chain transactions from Bitfinex’s hot wallet on March 31, 2024
•  Tether now holds 75,354 Bitcoin, purchased at an average price of $30,305

Tether, the force behind USDT stablecoin, recently boosted its Bitcoin reserves with an acquisition of 8,888 BTC on March 31, valued at $618 million. This move marks a significant step in Tether’s ongoing Bitcoin accumulation strategy, pushing its total reserves to over 75,000 BTC, worth more than $5.3 billion.

According to Arkham Intelligence data, the acquisition involved on-chain transactions from Bitfinex’s hot wallet on March 31, 2024, solidifying Tether’s spot as the world’s seventh-largest Bitcoin address. Over the past year, Tether has steadily grown its Bitcoin holdings, openly disclosing its BTC reserves since early 2023.

Tether CEO Paulo Ardoino emphasized the company’s strategic approach to Bitcoin investment, citing its resilience and potential as an asset. Tether allocates up to 15% of corporate profits from excess stablecoin reserves into Bitcoin, reflecting its confidence in the cryptocurrency’s long-term prospects.

In its latest attestation report for Q4 2023, Tether revealed that Bitcoin contributed $2.8 billion to its consolidated reserves, showcasing the positive financial impact of its Bitcoin investments. With Bitcoin prices currently around $70,000, Tether’s accumulation efforts are expected to drive scarcity and potentially boost prices.

Following the recent acquisition, Tether now holds 75,354 Bitcoin, purchased at an average price of $30,305, totaling approximately $5.2 billion. The company’s Bitcoin wallet has seen a remarkable increase of over 128%, with an unrealized profit of $2.94 billion, according to CoinStats data.

Tether’s move comes amid heightened institutional interest in Bitcoin, fueled by the approval of spot Bitcoin exchange-traded funds in the US and the upcoming Bitcoin halving. Tether’s commitment to investing 15% of its net profit into Bitcoin reflects its efforts to diversify the backing assets of its USDT stablecoin.

With USDT reaching a record $100 billion market cap on March 4 and a settlement agreement with the New York Attorney General’s office in 2021, requiring quarterly reports on its reserves, Tether remains a prominent player in the digital asset landscape.